We need to start a tally. Perhaps the Mortgage Lender Implode-o-Meter should diversify, to track the effects of failed lending practises through the financial system.
Sowood, comments Roger Ehrenberg at Information Arbitrage, is just the latest in the parade of credit hedge fund blow-ups:
Exactly how many funds will be laid low by the current credit markets ugliness? I’d hazard a guess that the final count will be in the low hundreds….THE common thread separating the truly successful hedge funds with long track records from road-kill: strong risk management practices.
Elsewhere, Dealbreaker reports an apocalyptic forecast which rather hysterically sees half of all hedge funds out of business in the next five years thanks to events in the credit markets.
Anyway there’s plenty more today. Oddo, the French stockbroker, is to shut three funds totalling €1bn citing the “sudden and unprecedented crisis,” in US asset-backed securities market. Another Bear Stearns fund is in trouble, and Macquarie has also hit the buffers.
We make that 16 to date – or so. Add your own – we’ve already lost count.
Since June 2006:
Hedge funds get a mauling:
Macquarie warns of losses in two debt funds
Third Bear Stearns fund in trouble
Oddo to shut three funds, ‘caught out’ by credit rout
Credit market troubles hit two Absolute Capital funds
United Capital’s Horizon fund a victim of subprime
Cambridge Place’s Caliber to be wound up
Queen’s Walk fuels subprime concerns
Two Bear hedge funds worth ‘virtually nothing’
Shares in Wharton’s Trio vehicle drop more than 20 per cent on subprime exposure
The rumours:
Caxton Associates (via Dealbreaker) – Denied by Caxton.