Hedge Fund Collapse

**Fivetears** · 08-24-2007, 06:34 AM

13 Hedgefunds have Imploded to date since mid 2007

13. Sentinel Mangement Group
12. Sachsen LB: Ormond Quay conduit fund
11. Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia (BNP Paribas)
10. Union Investment Asset Management Holding AG
9. Oddo: Cash Titrisation; Cash Arbitrages; and Court Terme Dynamique
8. Sowood Capital Management
7. Galena Street Fund
6. United Capital Markets Holdings Inc.: Horizon Strategy
5. Caliber Global Investment
4. Lake Shore Asset Management
3. Ritchie Capital Management
2. Bear Stearns: High Grade Structured Credit Strategies Enhanced Leveraged Fund; High Grade Structured Credit Strategies Fund
1. Dillon Reed Capital Management (UBS)

http://hf-implode.com/

**Fivetears** · 08-29-2007, 04:36 PM

Australian fund Basis Yield files for bankruptcy
Basis Yield Alpha Fund, a hedge fund specializing in corporate and structured credit, on Wednesday filed for bankruptcy protection in the United States amid mounting losses from U.S. subprime mortgage assets. Basis Yield said it had in June begun to suffer a "significant devaluation" in its asset portfolio, following market volatility related to U.S. subprime lending defaults. It said the devaluation led to margin calls, which it was unable to meet, and the issuance of several default notices by counterparties seeking to close out trades or seize assets.
http://news.yahoo.com/s/nm/20070829/...2iQMTANJYE1vAI

**350zCommTech** · 08-31-2007, 02:02 PM

Let's print a bunch of many and bail out all the hedge funds...

Barclays to provide $1.6 bln funding for Cairn

By Simon Kennedy, MarketWatch.com
Last Update: 7:43 AM ET Aug 31, 2007

LONDON (MarketWatch) -- U.K. banking group Barclays on Friday said it will provide emergency financing to bail out a $1.6 billion structured investment vehicle after the collapse of the short-term debt market left the vehicle unable to secure funding elsewhere.

The SIV -- Cairn High Grade Funding -- invests mainly in prime and subprime U.S. residential mortgages and previously raised financing by issuing commercial paper, a type of short-term debt that needs to be replaced every two or three months.
In recent weeks these investment vehicles have struggled to find buyers for commercial paper as the value of their mortgage portfolios has fallen and investors have been much more wary of lending money. Read more on commercial paper troubles.

The move by Barclays, which helped set up Cairn High Grade early last year, means the SIV will not be forced to sell its mortgage holdings at the current low market prices.
In a joint statement with Cairn Capital, the hedge fund group that manages the SIV, Barclays said it will replace all the outstanding commercial paper with term funding as it matures.
Barclays also noted that it has fully hedged all its credit exposure related to the financing deal.
The announcement came after Barclays on Wednesday borrowed 1.6 billion pounds ($3.2 billion) from the Bank of England's emergency lending facility, but denied it needed to borrow the money because it was having its own liquidity problems.
Investors have been concerned following reports that the group was having trouble borrowing from other banks and faced losses from its exposure to SIVs.

But in a statement late Thursday, Barclays said the loan was necessary because of a technical breakdown in the U.K.'s financial clearing market.
An earlier report in the Wall Street Journal said the settlement house, operated by Euroclear, confirmed it experienced disruptions, but said there had been enough time for banks to make their borrowings and settle their accounts by the end of the day.

Shares in Barclays climbed 1.7% in London after recent weakness has seen them drop around 16% since early August.
Barclays and Cairn said investors in the SIV have backed the new structure and will pay their share of the restructuring costs involved.
Simon Kennedy is the City correspondent for MarketWatch in London.http://www.marketwatch.com/news/stor...EB5381CA148%7D

**Fivetears** · 08-31-2007, 05:55 PM

Oh OH!!

They're "Structured Investment Vehicle's"!!!

Well I guess that's different.

**Fivetears** · 09-05-2007, 12:30 PM

As 350Z posted on 2008-08-31: Cairn Capital High Grade Funding I
http://www.bloomberg.com/apps/news?p...m.0&refer=home

I see another Hedge Fu......... eh... STRUCTRED INVESTMENT VEHICLE has missed our attention:
2007-08-29: Geronimo Multi-Strategy, Sector Opportunity, and Option & Income.
http://www.bizjournals.com/denver/st...7/daily41.html

16! 16 SIV Bailouts ah ah ah!

**Bullitt** · 09-06-2007, 09:52 AM

Another one bites the dust. Global Advisors LP, which invests in metal, energy and grain is closing 2 hedge funds down after losses in the recent volatility in commodities.

**Birchtree** · 09-06-2007, 05:28 PM

I say clean'em all out - they're basically herd followers anyway and cause too many unwanted ripples when they move in tandem. Most of them can't think past two weeks.

**Bullitt** · 10-10-2007, 11:43 PM

Live by the gun die by the gun. Article paraphrased from WSJ.

Victor Niederhoffer of Manchester Trading had to shut down his hedge fund 'Matador Fund' after losing 70% last month alone. Apparently he's had returns of 50% or more numerous years, but this market turndown was a crushing blow. Last year he told reporters he was only going to give the hedge fund business one more chance as he couldn't afford any more setbacks.

**Birchtree** · 10-11-2007, 01:28 AM

I'm sure the requiem will be somber.

**James48843** · 10-11-2007, 02:08 AM

21

Twenty-One (21) Hedge Funds have now imploded.

http://hf-implode.com/

(Excuse me please for being a copycat. That was just too much fun NOT to do.)

**Fivetears** · 10-13-2007, 04:51 PM

Remember James... they're "Structured Investment Vehicle's."

**kaitlinsnana** · 10-13-2007, 07:53 PM

Five tears. Ilike it, sounds like an indian name. I have a very vague idea of what hedge funds are. I know they operate outside the rules - sort of. Are any of them safe. I'm toying with the idea.

Gail