Tuesday, March 4, 2008
Could something similar to this explain the Oil and Gas selloffs today?
Focus Capital, a $1bn New York hedge fund, has been forced to liquidate its portfolio after missing margin calls from banks, it told investors on Tuesday. The fund, which had produced strong returns by investing in Swiss mid-cap stocks since starting in 2005, is now expected to shut down after losing about 80 per cent of its value. The collapse is the latest to hit leveraged hedge funds, following the failure of Peloton Partners’ $2bn ABS fund last week, and comes as worries are rising that forced sales by hedge funds could drive down prices.