Friday, Feb 29, 2008
Hedge Fund Fire Sale!
FT: Peloton Partners in $2bn assets sale
“It is the classic story of when leverage goes wrong,” one investor said. “But I can’t believe this problem is confined to these guys alone.”
No I can't either. This WAS one of London's most successful funds, which only LAST MONTH was named 'best new fixed income hedge fund'.
Posted by doom&gloom @ 11:03 AM (124 views) Add Comment
2 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
1. happyrenterz said...
``The collapse of Peloton's flagship fund yesterday is a reminder to all investors that yesterday's rising star can be tomorrow's fallen angel,'' Charpin wrote. ``Leveraged risk positions are a cancer in this market and the sooner it is treated the better.''
Bloomberg: Financial Firms Face $600 Billion of Losses, UBS Says
A few years from now the mantra will have changed from "houses only go up" to "never invest in property".
2. Slysmiles said...
Quote: A few years from now the mantra will have changed from "houses only go up" to "never invest in property".
Not strictly true happyrenterz, property can be a great hedge against currency devaluation, if there prices are right for entry. For the last 8 or so years, this has been false, but was not, nor will, always be the case.
It is clear that the current system is robbing everyone blind but the rich. Sane investment in property, and no equity release is still safer than investment in most other financial areas. My advice is buy tangible commodities now, before we're priced out and our currency and economy collapse. This whole setup is geared towards make the rich ultra rich and destroying the middle class. The poor will suffer just as badly. Ignore the wider picture at your peril, as this crisis is much larger than just a housing bubble, and is not limited to the UK/US. Silver and Gold are the simplest to acquire/store and trade.