Medical experiment goes badly wrong for Durus

Mon Sep 1, 2003

Still no explanation, but other funds were buying alongside Scott Sacane

Weeks after news started to break that Durus, a little-known fund, had built up an enormous position in a micro-cap biomedical company, there has been no clear explanation of what happened, other than an extraordinary claim by manager Scott Sacane that he bought the position by mistake.

Whether it was 'by mistake' or deliberate, Durus was left holding a 76% stake in Aksys, the Illinois-based manufacturer of dialysis machines, which then threatened to trigger a 'poison pill' unless Sacane stopped his buying spree. It has since emerged that Durus also owns large positions - although nothing like as big as Aksys - in a number of other tiny biomedical stocks.

Interestingly, Durus was not buying alone. Other major hedge fund groups including John Griffin's Blue Ridge, Stanley Druckenmiller's Dusquesne and Soros had also taken positions in many of the companies in...

ISSN: 2151-1845 / CDC10004H

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