Amid massive redemptions, hedge fund Alson Capital is closing its doors. The $800 million fund performed poorly in a difficult market. The fund once manages as much as $3.5 billion. Alson Capital was founded 11 years ago by Neil Barsky, a former Wall Street Journal employee who went on to work with Morgan Stanely before creating his fund.
According to Barsky: “I likely will never again manage a hedge fund,” he wrote to investors. He did pronounce himself “young enough and energetic enough to purse new initiatives either in the fields of business, government or philanthropy.”
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Showing posts with label hedge fund closings. Show all posts
Showing posts with label hedge fund closings. Show all posts
3.27.2009
Communities Around Hedge Funds Collapse
Greenwich, CT used to be the US hedge fund capital (outside of New York). It used to be difficult to find a parking spot for your Porsche or Mercedes in Greenwich's downtown. As banks and hedge funds shut down, boutique stores all around Greenwich are shutting down. While difficult retail times are being seen around the US and even the world, the evaporation of wealth in areas like Greenwich is much more severe. There are more than 100 hedge funds in Greenwich.
Some projections have the hedge fund industry cutting 20,000 jobs this year, nearly 14% of the industry. As these employees lose their jobs, and remaining employees lose their bonuses, high end stores in areas with a high concentration of financial services jobs are likely to be hit hardest.
2.10.2009
Sam Israel's Girlfriend Pleads Guilty to Aiding and Abetting
Debra Ryan, girlfriend of former hedge fund manager Sam Israel, plead guilty to "aiding and abetting Samuel Israel III's failure to surrender to serve his sentence on June 8, 2008", according to the US Attorney's office.
Israel was supposed to serve 20 years in prison, beginning in June of 2008, for his role in defrauding investors in the Bayou Management funds. Rather than turn himself in, Israel allegedly faked his own suicide, and then fled to avoid incarceration.
Background
$440 million The alleged money under management for Bayou.
$101 million Money frozen by State of Arizona believed to be remaining assets of Bayou Management LLC.
The action also states that in the spring of 2004 Bayou began a series of transactions which involved transferring large sums of money to numerous banks. The private placement programs promised above average rates of return, as much as 100% per week. These transactions are what initiated the Arizona investigation.
t Bayou, its principals and Richmond-Fairfield, citing much of the same evidence as the Federal court in charging Bayou. In addition the CFTC points out that Marino, CFO for Bayou, was listed as the registered agent of Richmond Fairfield from Oct. 10, 2000 to April 29, 2003 and is identified as the member/manager of Richmond-Fairfield in New York State records on those with professional licenses. It also notes that Israel was listed as the registrant of the Richmond-Fairfield Web site and the e-mail address provided to the Web sites domain registry was bayoufund@aol.com1.11.2009
Boston Hedge Fund - Another Madoff Casualty
Among the dozens of casualties to result from the Madoff ponzi scheme is GMB Capital Management. GMB made $50 million in bad bets including large investments in Madoff's fund. GMB's ironically named Low-Volatility Fund previously had $100 million in assets under management. The hedge fund is run by Gabriel Bitran of MIT.
1.07.2009
3000 Hedge Funds Could Close, BNP Paribas Says
BNP Paribas is speculating that more than 3000 hedge funds that operated in 2008 will be gone by the end of 2009. BNP Paribas is also noting that hedge fund assets could fall under $1 trillion.
According to Hedge Fund Research, more than 600 hedge funds closed their doors in 2008. up more than 70% from 2007.
The third quarter, the last quarter for which data is complete, witnessed more than 300 hedge fund closures, a new record.
1.06.2009
JD Capital Management Liquidates $1B Hedge Fund
JD Capital Management is said to be liquidating the Tempo Master Fund, a fund that is reported to be down more than 40% on the year.
The hedge fund is run by J. David Rogers, a former Goldman Sachs executive.
Read the full article here
The hedge fund is run by J. David Rogers, a former Goldman Sachs executive.
Read the full article here
11.11.2008
Largest Hedge Fund Failures in History
Here is a list of some of the largest hedge fund failures in history:
Amaranth Advisors- was an American hedge fund managing about US$9 billion in assets. In 2006, it collapsed after losing nearly $6 billion in a single week on natural gas futures. Amaranth's failure was the largest hedge fund collapse in history.
Long-Term Capital Management - Long-Term Capital Management was a hedge fund founded by John Meriwether in 1994 which collapsed in early 2000 after the Russian financial crisis. Meriwether's fund hired some of the brightest minds, including nobel laureates.
Wood River Capital Management- Founded by John Whittier, Wood River closed in 2005 after Whittier was accused of defrauding investors and was said to have had relatively little investment experience. They were later sued by Lehman and others for failing to pay for services.
Bayou Group- Founded by Samuel Israel in 1996, The Bayou Group was a hedge fund with nearly half a billion in assets, but investors accused Israel of fraud. Investors were promised the fund would grow nearly 20 fold in 10 years.
MotherRock - Founded in 2004, MotherRock had $450 million in assets in 2006 when it began having poor returns climaxing in a brutal June where it lost 26% and promptly shut down.
And surely after the poor returns hedge fund indeces showed in Sept and Oct of 2008, there are more hedge fund failures to come.
Amaranth Advisors- was an American hedge fund managing about US$9 billion in assets. In 2006, it collapsed after losing nearly $6 billion in a single week on natural gas futures. Amaranth's failure was the largest hedge fund collapse in history.
Long-Term Capital Management - Long-Term Capital Management was a hedge fund founded by John Meriwether in 1994 which collapsed in early 2000 after the Russian financial crisis. Meriwether's fund hired some of the brightest minds, including nobel laureates.
Wood River Capital Management- Founded by John Whittier, Wood River closed in 2005 after Whittier was accused of defrauding investors and was said to have had relatively little investment experience. They were later sued by Lehman and others for failing to pay for services.
Bayou Group- Founded by Samuel Israel in 1996, The Bayou Group was a hedge fund with nearly half a billion in assets, but investors accused Israel of fraud. Investors were promised the fund would grow nearly 20 fold in 10 years.
MotherRock - Founded in 2004, MotherRock had $450 million in assets in 2006 when it began having poor returns climaxing in a brutal June where it lost 26% and promptly shut down.
And surely after the poor returns hedge fund indeces showed in Sept and Oct of 2008, there are more hedge fund failures to come.
11.10.2008
Hong-Kong Based Hedge Fund Closes
1-Apac Greater China hedge fund who once managed $55 billion is closing its doors. Dr. Ken Lu confirmed today the decision was made to pull the plug after 16% losses this month and assets diminishing to under $10 million.
Very bearish asian stock market returns have been pounding China focused hedge funds this year with more fund closings than openings this year. This is a sharp reversal from last year when almost twice as many hedge funds were opened as were closed.
Read the full article:
Very bearish asian stock market returns have been pounding China focused hedge funds this year with more fund closings than openings this year. This is a sharp reversal from last year when almost twice as many hedge funds were opened as were closed.
Read the full article:
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