Galena had barely any leverage, according to the letter
he had rightly calcualted that the chance of repayment on the loans was lower than the recent mega millions odds... so he bought 26 million worth of the one chance tickets... he lost
Let's hope this isn't a trend. A few more of these may provoke fund investors to withdraw some from performing investments out of caution, thus precipitating even more such events.
It's just a "blip in the radar." Jimmy Cayne told people who told me so.
So someone yelled "Fire" and some are rushing to the exits in a "liquidity crunch."
Two years from now, when the surviving hedge funds are showing marvelous returns--Felix Salmon keeps telling us this is a zero-sum game, and we must believe him--will that be used by The New Administration to keep them from being regulated?
Same old, same old, look who pays the losses in a hedge fund melt down.
Dozens of South Florida senior
citizens have lost millions...
Coral Springs lawyer Darren Blum said Tuesday that his firm is representing about 25 investors who had invested $20 million with Brookstreet Securities, a California firm that has brokers in at least a half-dozen South Florida offices. Many investors are planning legal action to recover their losses, and for damages and attorneys fees.
... The margin losses mean that investors not only lost their funds, but could owe money that was borrowed to trade in their accounts. Blum said he talked with one client Tuesday who has about $12 million in margin losses.
So if all of the assets in the fund are liquidated to pay off the margin calls and the redemptions, then what is left for the investors to collect? (assuming that they win their suit?) I doubt that the earnings of the fund managers is just laying around in some bank account waiting to be collected.
Would a court issue an injunction against the fund prohibiting it from selling the assets? The potential plaintiffs may not even get into court in time to move for an injunction.
Come on............. No Whammies!
Congratulations contestant number three! You can "soon" open your bag to see what you have won!
Until tomorrow on Leverage Your Luck...
Galena had barely any leverage, according to the letter
he had rightly calcualted that the chance of repayment on the loans was lower than the recent mega millions odds... so he bought 26 million worth of the one chance tickets... he lost
Oh boy, 20% !!
Let's hope this isn't a trend. A few more of these may provoke fund investors to withdraw some from performing investments out of caution, thus precipitating even more such events.
Fortunately, the problems in the subprime market won't affect the rest of the economy. At least that's what they keep telling me.
It's just a "blip in the radar." Jimmy Cayne told people who told me so.
So someone yelled "Fire" and some are rushing to the exits in a "liquidity crunch."
Two years from now, when the surviving hedge funds are showing marvelous returns--Felix Salmon keeps telling us this is a zero-sum game, and we must believe him--will that be used by The New Administration to keep them from being regulated?
I know which way to bet.
Ummmmmm...so WHEN will we get the "hedge fund implod-o-meter"??
You know it would be a good idea
Topic Galleries -- South Florida Sun-Sentinel.com
Same old, same old, look who pays the losses in a hedge fund melt down.
Dozens of South Florida senior
citizens have lost millions...
Coral Springs lawyer Darren Blum said Tuesday that his firm is representing about 25 investors who had invested $20 million with Brookstreet Securities, a California firm that has brokers in at least a half-dozen South Florida offices. Many investors are planning legal action to recover their losses, and for damages and attorneys fees.
... The margin losses mean that investors not only lost their funds, but could owe money that was borrowed to trade in their accounts. Blum said he talked with one client Tuesday who has about $12 million in margin losses.
Ha, the good folks they elected to govern them in the name of lower taxes and less regulation also win the cannot sue award.
So if all of the assets in the fund are liquidated to pay off the margin calls and the redemptions, then what is left for the investors to collect? (assuming that they win their suit?) I doubt that the earnings of the fund managers is just laying around in some bank account waiting to be collected.
Would a court issue an injunction against the fund prohibiting it from selling the assets? The potential plaintiffs may not even get into court in time to move for an injunction.
What a mess.
Craig,
I've started a Hedge Fund Failometer page at my blog, Wasatch Economics.