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Opalesque Exclusive: View - 7.5 times leveraged - no good job of de-leveraging at Peloton
A respected industry source gave Opalesque the following commentary on yesterday’s coverage: Peloton’s long book was leveraged 7.5 times, so a 15% fall in 2006/07 AAA ABX vintages wiped-out the fund. Some investors understood leverage to be only 4 times. Either way, in this market environment with that asset class it is irresponsible speculating, coupled possibly with misleading of investors and the air of a breach of fiduciary duty. We’ll see how the FSA looks at it.
Peloton to liquidate funds and close shop
From Reuters.com: Peloton Partners LLP, a London-based hedge fund that formerly held nearly $3 billion in assets, is liquidating its two funds and shutting down, the firm told investors on Wednesday, according to two people familiar with the situation.
Peloton last week told investors that it was liquidating its $2 billion ABS Fund after lender banks pulled back on credit. It held out hopes that it could salvage its second fund, the $1.6 billion Multi-Strategy Fund, even though some 40 percent of that fund's assets were invested in the ABS Fund.
Today, however, the fund told investors that the Multi-Strategy Fund is being liquidated in coming days, with the proceeds returned to investors, the source said. Full article: ...................... To view our full article Click here
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