Platinum Grove Asset Management, the hedge-fund firm co-founded by Nobel laureate Myron Scholes, temporarily stopped investor withdrawals from its biggest fund after it lost 29 percent in the first half of October.
With hedge funds down 20% this year on average, Nobel laureate Myron Sholes' hedge fund Platinum Grove Asset Management, is temporarily stopping withdrawals from its largest hedge fund after losing almost 30% in the first part of October alone.
Ironically, Scholes, who won the Nobel prize for economics in 1997, was also a key part of Long-Term Capital Management, one of the largest hedge funds to ever collapse. Platinum Grove managed $4.8 billion as of the end of Aug.
On Friday, Platinum Grove Asset Management released a statement" "Platinum Grove will use this period to consult with its investors and counterparties, determine their future intentions and manage the assets of the fund accordingly."