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From Benedicte Gravrand, Geneva: Last week saw some of the after-effects of the subprime fall-out that started a few months ago, and the subsequent first casualties, the two Bear Stearns hedge funds.

On the hedge fund side, we saw that:

• The hedge fund firm Sowood Capital Management lost an estimated 60% after betting on corporate bonds and loans.
• WestLB Mellon Asset Management suspended the issuing and redemption of shares in an asset-backed securities fund.
• Goldman Sachs’ $8 billion Global Alpha hedge fund fell 26%, almost 40% since July 06.
• A second hedge fund, North American Equities Opportunities, later sold down some of its positions.
• U.S. quant market-neutral hedge fund Tykhe Capital lost around 20% this month.
• Highbridge Capital Management’s quant fund experienced some difficulties. $29 billion quant fund hedge fund Renaissance Institutional Equities Fund fell by 8.7%.
• Black Mesa Capital’s market-neutral hedge fund went down 7.5% this month, and could go down as much as 10%.
• Man Group decided to delay its planned IPO on the NYSE indefinitely.

In the U.S.:

• Moody’s announced it will separate its credit ratings arm fro the rest of its business.
• American Home Mortgage filed for bankruptcy protection. Deutsche Bank and JPMorgan were its biggest creditors.
• Many corporations have blamed the credit crisis for earning shortfalls. ......................

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