The problems multiply for hedge funds too. While showed an annual profitability 15% in 2007, Ospraie Management has had to announce Tuesday night the closure of its Features funds, Ospraie Fund, which decreased by 38.6% since the beginning of the year as a result of losses on raw materials.
It imitates In line with decisions Andor Capital and Turnberry Capital. Indeed, Ospraie, which account Lehman Brothers (for 20%) and Credit Suisse among its shareholders, announced plans to redistribute 40% of capital its funds by 2.8 billion $ end of September, and 40% at the end of the year. Reimbursement the remaining 20%, less liquid, could take three years, has already warned fund arbitration.
An announcement which came in addition to other revelations.
Ore Hill Partners has refused to its customers the ability to recover their money invested in its flagship fund. In early week, an anonymous source also indicated to Reuters qu'Atticus have lost more 5 billion dollars this
year, while its assets under management would be dropped to 14
billion at the end of July against more 20 billion last year. On the whole sector, the influx new capital did high as $ 30 billion the first half against
119 billion in 2007.
A growing number of investors believe that the difficulties are only beginning. Chris Orndorff, head of strategy at Payden & Rygel, predicts that the operation is Ospraie "The first of a larger number to come on this sector, ensuring that "the majority of hedge funds [record]
This negative performance year. " The Wall Street Journal in its edition on Tuesday believed able to say that funds as GLG Partners, TPG-Axon, Cantillon Capital or Atticus Capital were not better performance included
between -10 and -25% since earlier this year. Peter Rup, in charge investments for Orion Capital Management, explains turn it Surprising the difficulties Current funding for arbitration because their managers "do not know when out "of their positions. As a result of this management, The New York Times reported that during the first quarter 170 hedge funds had "Closed their doors" against 138 last year. A number which is expected to rise the second quarter, said New York newspaper. Last dated, Ospraie who was forced to announce Tuesday evening closure its flagship fund after it lost 38.6% this year
A trend which could continue......