Goldfinger Posted June 28, 2007 Share Posted June 28, 2007 (edited) Since the two Bear Stearns hedge funds have gotten into trouble, the financial systems seems to show more and more cracks in the form of highly leveraged hedge funds that seem to have been betting on the wrong side of CDOs, MBSs and other weapons of financial mass destruction. We should follow this process, since it is a sign of coming trouble and also a good barometer for general credit tightening and fallout from the housing/mortgage-debacle. I suggest therefore to keep loosely track of what is going on in the sector by maintaining a list of funds in trouble. I make a start here. I would propose to post information in the following form (fund in alphabetical order): Fund's name (or institution who runs it) -- assets kind of investments kind of trouble they're in; reported losses (if any) link(s) to relevant news ---------------------------------------------- Since June 2007, 9 funds have gotten into trouble: Bear Stearns High- Grade Structured Credit Fund Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund CDOs rescue efforts http://www.bloomberg.com/apps/news?pid=new...id=ahWfhEJ7dra4 http://www.bloomberg.com/apps/news?pid=new...id=a2.uCdsyYHtE Caliber Global Investment Ltd. -- $908 million (Cambridge Place Investment Management LLP) mortgage fund closes down (losses) http://www.bloomberg.com/apps/news?pid=206...amp;refer=funds Fund by Carlyle Group MBSs IPO postponed; downsized http://www.bloomberg.com/apps/news?pid=206...&refer=home Dillon Read Capital Management LLC (UBS) equities, mortgages losses: $122 million in Q1 2007 http://www.bloomberg.com/apps/news?pid=new...id=aV.uoldRoQGU Lake Shore Asset Management Ltd. -- $466 million commodities fund assets frozen; overstated holdings http://www.bloomberg.com/apps/news?pid=206...&refer=home Queen's Walk Investment Ltd. (Cheyne Capital Management Ltd.) mortgage fund losses $91 million http://www.bloomberg.com/apps/news?pid=206...&refer=home Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. II life insurance investments filed for bankruptcy; losses $700 million http://www.bloomberg.com/apps/news?pid=206...&refer=home Edited June 29, 2007 by Goldfinger Quote Link to comment Share on other sites More sharing options...
DabHand Posted June 28, 2007 Share Posted June 28, 2007 Ooh thats good, why dont you draw up a list of the "x" largest as well. Then you can do the implode-ometer red and blue strike throughs for bankruptcy, or take over. Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted June 28, 2007 Author Share Posted June 28, 2007 Ooh thats good, why dont you draw up a list of the "x" largest as well. Then you can do the implode-ometer red and blue strike throughs for bankruptcy, or take over. I'll think about it. Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted June 29, 2007 Author Share Posted June 29, 2007 (edited) Updated to 9 hedge funds (see OP). Edited June 29, 2007 by Goldfinger Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted June 29, 2007 Share Posted June 29, 2007 Updated to 9 hedge funds (see OP). I thieved this list for the site below. Hope you don't mind. Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted June 29, 2007 Author Share Posted June 29, 2007 I thieved this list for the site below. Hope you don't mind. That's fine. I hoped anyway that someone would become interested and helped gathering information as well. Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted June 29, 2007 Share Posted June 29, 2007 Bit mental but interesting nonetheless: http://elainemeinelsupkis.typepad.com/mone...le-runs-aw.html Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted July 3, 2007 Author Share Posted July 3, 2007 (edited) Welcome to the Hedge Fund Implode-O-Meter Update -- 10 funds so far. New funds are posted in bigger fonts at the beginning. ----------------------------------------------------------------------------------------------- Since June 2007, 10 funds have gotten into trouble: Bear Stearns High- Grade Structured Credit Fund Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund CDOs rescue efforts http://www.bloomberg.com/apps/news?pid=new...id=ahWfhEJ7dra4 http://www.bloomberg.com/apps/news?pid=new...id=a2.uCdsyYHtE Caliber Global Investment Ltd. -- $908 million (Cambridge Place Investment Management LLP) mortgage fund closes down (losses) http://www.bloomberg.com/apps/news?pid=206...amp;refer=funds Fund by Carlyle Group MBSs IPO postponed; downsized http://www.bloomberg.com/apps/news?pid=206...&refer=home Dillon Read Capital Management LLC (UBS) equities, mortgages losses: $122 million in Q1 2007 http://www.bloomberg.com/apps/news?pid=new...id=aV.uoldRoQGU Horizon ABS Fund LP (United Capital Markets Holdings Inc. -- $619 million) subprime- mortgage bonds restricted redemptions because of "unusually high number of redemption requests" http://www.bloomberg.com/apps/news?pid=206...&refer=home Lake Shore Asset Management Ltd. -- $466 million commodities fund assets frozen; overstated holdings http://www.bloomberg.com/apps/news?pid=206...&refer=home Queen's Walk Investment Ltd. (Cheyne Capital Management Ltd.) mortgage fund losses $91 million http://www.bloomberg.com/apps/news?pid=206...&refer=home Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. II life insurance investments filed for bankruptcy; losses $700 million http://www.bloomberg.com/apps/news?pid=206...&refer=home Edited July 3, 2007 by Goldfinger Quote Link to comment Share on other sites More sharing options...
DrBob Posted July 3, 2007 Share Posted July 3, 2007 (edited) Great endeavor - thanks for putting this list together. Hope you can keep it updated! How long before we see the Private Equity Deal Implode - O - Meter? Edited July 3, 2007 by DrBob Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted July 3, 2007 Share Posted July 3, 2007 Here's a little piece that has a look at who might be next and analyses why BS were the first to go. Investment Landfill - Is your pension fund a dump for toxic waste? http://goldnews.bullionvault.com/files/Inv...nt_Landfill.pdf Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted July 3, 2007 Share Posted July 3, 2007 (edited) Here's a little piece that has a look at who might be next and analyses why BS were the first to go.Investment Landfill - Is your pension fund a dump for toxic waste? http://goldnews.bullionvault.com/files/Inv...nt_Landfill.pdf So Bear Stearns went from nowhere (lower than 25th) to 13th in 1 year. Duke Funding LLC seems to have gone from 17th to 3rd in the same time, with USD10bn of liabilities. Perhaps we should keep our eyes on that one too? Edited July 3, 2007 by Warwick-Watcher Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted July 3, 2007 Share Posted July 3, 2007 So Bear Stearns went from nowhere (lower than 25th) to 13th in 1 year. Duke Funding LLC seems to have gone from 17th to 3rd in the same time, with USD10bn of liabilities. Perhaps we should keep our eyes on that one too? Sticks out liek a sore thumb doesn't it? Quote Link to comment Share on other sites More sharing options...
depaulo Posted July 3, 2007 Share Posted July 3, 2007 (edited) Lake Shore Asset Management Ltd. -- $466 millioncommodities fund assets frozen; overstated holdings http://www.bloomberg.com/apps/news?pid=206...&refer=home Just a month ago i put 100k into this. I am rather peed off to say the least. The only reason i put money in was because i needed to try and keep pace with this bloody housing market and it seemed reasonably non correlated with the stock market. Aaagh! You just can't win. Edited July 3, 2007 by depaulo Quote Link to comment Share on other sites More sharing options...
BrownField Posted July 3, 2007 Share Posted July 3, 2007 You should track the ABX indices as well... BBB is down to 54, almost a 50% loss! A is down almost 20%!!! http://www.markit.com/information/affiliations/abx Quote Link to comment Share on other sites More sharing options...
Oliver Sutton Posted July 3, 2007 Share Posted July 3, 2007 Here's a little piece that has a look at who might be next and analyses why BS were the first to go.Investment Landfill - Is your pension fund a dump for toxic waste? http://goldnews.bullionvault.com/files/Inv...nt_Landfill.pdf That piece was unbelievable. One of the funds was leveraged 15 times !!! Does that mean there are 15 other funds dependant on it's paper valuation? Quote Link to comment Share on other sites More sharing options...
zinny01 Posted July 3, 2007 Share Posted July 3, 2007 I love Implode-O-Meters. Another one down http://www.ft.com/cms/s/40dbb554-2914-11dc...0b5df10621.html Quote Link to comment Share on other sites More sharing options...
Chazza Posted July 3, 2007 Share Posted July 3, 2007 Since the two Bear Stearns hedge funds have gotten into trouble, the financial systems seems to show more and more cracksin the form of highly leveraged hedge funds that seem to have been betting on the wrong side of CDOs, MBSs and other weapons of financial mass destruction. We should follow this process, since it is a sign of coming trouble and also a good barometer for general credit tightening and fallout from the housing/mortgage-debacle. I suggest therefore to keep loosely track of what is going on in the sector by maintaining a list of funds in trouble. I make a start here. I would propose to post information in the following form (fund in alphabetical order): Fund's name (or institution who runs it) -- assets kind of investments kind of trouble they're in; reported losses (if any) link(s) to relevant news ---------------------------------------------- ..... An interesting point I am sure. However would it be more balanced to compare against the number of hedged funds started over the previous 5 years, say, and how also how many closed during the same period? Also, whilst I agree the shadow of subprime will be with us for the medium term, I think one has to keep in mind the money made by hedge funds in the past few years of this macro bull market. Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted July 3, 2007 Share Posted July 3, 2007 An interesting point I am sure. However would it be more balanced to compare against the number of hedged funds started over the previous 5 years, say, and how also how many closed during the same period?Also, whilst I agree the shadow of subprime will be with us for the medium term, I think one has to keep in mind the money made by hedge funds in the past few years of this macro bull market. Thanks! Have updated. Quote Link to comment Share on other sites More sharing options...
dstars Posted July 3, 2007 Share Posted July 3, 2007 (edited) Wonderful article. http://goldnews.bullionvault.com/files/Inv...nt_Landfill.pdf Edited July 3, 2007 by dstars Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted July 3, 2007 Share Posted July 3, 2007 Wonderful article. Yeah. They're going to shift them over six months? Good luck with aaaaall that. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted July 3, 2007 Share Posted July 3, 2007 Wonderful article.http://goldnews.bullionvault.com/files/Inv...nt_Landfill.pdf 'Investment landfill' great title http://goldnews.bullionvault.com/investmen...waste_063020072 Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted July 3, 2007 Author Share Posted July 3, 2007 Thanks for all the comments. I agree that the reporting is not very balanced in the sense that there is not much perspective given in terms of overall number of funds, what they made in profits so far, etc. I guess we're all busy people, but if all of us gather some info and post it here, we can at least keep loosely track of what is going on. It's great that the Duke of Hazzard brings a little more structure into it on his webpage. GF Quote Link to comment Share on other sites More sharing options...
bazzzzzzz Posted July 3, 2007 Share Posted July 3, 2007 Great thread. Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted July 3, 2007 Author Share Posted July 3, 2007 Some background on what went wrong at (and who is that person Cioffi behind) the Bear Stearns funds: http://www.bloomberg.com/apps/news?pid=206...&refer=home Quote Link to comment Share on other sites More sharing options...
Furby Posted July 4, 2007 Share Posted July 4, 2007 Some background on what went wrong at (and who is that person Cioffi behind) the Bear Stearns funds:http://www.bloomberg.com/apps/news?pid=206...&refer=home In a community where you're only as good as your last trade, Cioffi's sudden misfortune won't get a lot of sympathy, said AllianceBernstein's Foster. ``A few bad bets and there you go. This is the name of the game unfortunately.'' A few bad bets? It is just a game of numbers for the fund managers. The problem is of course they are dealing with real peoples money and pensions. Shylocks the lot of them. Good thread GF. F Quote Link to comment Share on other sites More sharing options...
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