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Goldfinger

Hedge Fund Implode - O - Meter

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so a lotta money's been lost by the hedgies- so what?

it wont cause a house price crash will it now? the amounts we are talking about wont destroy the hedgefund market - its too lucrative to destroy

heck- bear stearns suffered huge losses- but they're still around and house prices are still un-affordable!

Completely agree. It is no problem when 45 hedge funds have imploded since end of June. It is also no problem if the three biggest bank and derivatives holders in the US need to set up a common waste water facility such that no one can make out individual flaming turds floating in it anymore.*

* NOT! :lol::lol: **

** GAME OVER!

Edited by Goldfinger

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so a lotta money's been lost by the hedgies- so what?

it wont cause a house price crash will it now? the amounts we are talking about wont destroy the hedgefund market - its too lucrative to destroy

heck- bear stearns suffered huge losses- but they're still around and house prices are still un-affordable!

Okay guys. We're beaten. House prices are still unaffordable. Let's all go home.

As a matter fo fact, these things should not even be called hedge funds at all. Many were set up simply as vehicles to hold this stuff 'away' from Dada until someone changed their nappy.

More will fall. Then we will start to see a little bite in the pension fund sector as well. Offical rates and real rates will have a big argument and sue for divorce. And when everyone is asking if we can all just borrow at negative rates from the BOE our system will start to collapse. But our system collapsing will not stop Margory Davis of Cleethorpes from demanding the 300% profit she thought she had last year; she is entitled, you see?

Patience. All in good time.

Edited by dstars

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Completely agree. It is no problem when 45 hedge funds have imploded since end of June. It is also no problem if the three biggest bank and derivatives holders in the US need to set up a common waste water facility such that no one can make out individual flaming turds floating in it anymore.*

* NOT! :lol::lol: **

** GAME OVER!

maybe the their actions are lost on you- these banks are desperate to continue the game- they're even joining forces- they could well 'cheat' everyone- after all its in their interest to continue the system-

you should be well aware of the desperation of the powers that be- after didnt they abandon the gold standard?- if they could do something that big then they're capable of anything-

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maybe the their actions are lost on you- these banks are desperate to continue the game- they're even joining forces- they could well 'cheat' everyone- after all its in their interest to continue the system-

you should be well aware of the desperation of the powers that be- after didnt they abandon the gold standard?- if they could do something that big then they're capable of anything-

No. It is important to realize that even the Cartel can not beat the (international) markets. Someone will have to pay for all this. Finally, it's the taxpayer and mortgagee, I suppose.

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http://www.bloomberg.com/apps/news?pid=206...&refer=home

Jan. 9 (Bloomberg) -- Bear Stearns Cos. is closing a hedge fund that invested in asset-backed securities after it plummeted at least 39 percent last year, losing more than $300 million between August and the end of November.

Hedge funds have done better than I thought so far. What is imploding is the shadow banking system, the SIVs.

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Alphaville's Markets Live had the following rumour:

NH: and apparently there is something ugly lurking in the hedge fund world

PM: Hmmm — we are not going to name the firm here, are we?

NH: no, coz we put a call in and they have not responded. so that would be irresponsible

PM: Well, the receptionist was very cheery — but all the senior people seem to be stuck in a meeting

NH: UK HEDGE FUND IN TROUBLE

NH: STORY DOING THE ROUNDS THAT UK HEDGE FUND XXXXXXX IS IN SERIOUS TROUBLE + PRIME

BROKERS ARE MOVING THERE RATES UP.

PM: There is clearly somethign to this — firm in question was heavy into subprime

PM: As in moved into subprime believeing it was cheap….

PM: …in September

NH: oh dear

NH: and there was rumour yesterday if a large fund being shopped around for liquidation.

NH: again it was the same name being mentioned

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Being talked about, I'll give journalists a day before someone has the nerve to print the name. Not just sub prime, big firm, not just about some poorly performing assets....

I'm not sure I couldn't even list the UK based hedge funds. Is there a list somewhere?

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story on bloomberg now - "emperor has no cloths", appropriate indeed - there may be more to this story yet....

Peloton Partners LLP, the London- based hedge-fund firm run by former Goldman Sachs Group Inc.

partners, is selling assets because of losses on mortgage-backed securities, said two people with knowledge of the matter.

Peloton, founded by Ron Beller and Geoff Grant in 2005, is liquidating part of its asset-backed fund after declines in higher-rated mortgage securities, said the people, who declined to be identified because Peloton hasn't disclosed the information.

The firm has bids for holdings of the Peloton ABS Fund from firms, including Citadel Investment Group LLC and GLG Partners Inc., and is working with lenders to meet commitments, the people said.

The Peloton ABS Fund was named the best new fixed-income fund of 2007 by EuroHedge magazine after rising 87 percent on what Beller called a ``world-coming-to-an end'' trade that debt linked to subprime loans would tumble and higher-rated securities would rise. The fund had about $1.8 billion of assets.

``The rubbish goes down first and then the good stuff is pulled down with it,'' said Nigel Blanshard, a partner at London- based Culross Global Management Ltd., an $800 million fund that invests in other hedge funds and isn't a Peloton client. ``The flight to quality this year has been to get out of mortgages altogether.''

Grant, 47, who works in Santa Barbara, California, declined to comment.

`No Clothes'

When he collected his EuroHedge award last month, Beller, 45, said the firm's investment strategy had been built on a conviction that ``the emperor had no clothes.'' The ABS fund is managed by Peter Howard and David Watson.

``Our shorts last year were largely in subprime and our longs in prime assets,'' Beller said in a Jan. 25 telephone interview. ``We just benefited from the sharp drop in subprime and feel well positioned going forward as we expected our longs to continue to perform and our shorts to continue to deteriorate.''

A short sale is designed to profit when the security falls in value, while a long position is a bet the security will rise.

At New York-based Goldman, Beller headed the fixed-income, currency and commodity sales groups in Europe, and Grant oversaw the global foreign exchange business and was co-head of the firm's macro proprietary trading group. After Beller left Goldman in 2001, he worked for a year reorganizing New York City's school system.

Stick With Success

Peloton, which is named after a bicycle-racing formation in which riders work together to increase their speed, held its profitable trades into this year because it was confident they would continue to advance, according to a December investor report to investors in its Multi-Strategy fund, a copy of which was obtained by Bloomberg News. The firm's $1.6 billion Multi- Strategy fund, run separately from the ABS fund, gained 27 percent in 2007.

``We believe there is substantial profit potential built into our portfolio and expect plenty of opportunities to augment this through opportunistic trading around our core positions,''

the report said.

``We have recently fielded questions from ABS investors about `the trade' in 2008 and are confident we already have it on,'' the report said. ``As each month passes, this will become increasingly evident as our senior securities amortize at par while our subordinate shorts start receiving writedown payments.''

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Any guesses as to which Pelton fund is being liquidated?

From the WSJ its Peloton ABS fund :D:D . What comes up must come down.

Edited by eek

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