A banner year for shutdowns
Sun Mar 1, 2009
Fund closures hit an estimated $84 billion - more than quadruple the amount in 2007 - with more than 200 American funds shuttered last year.
Fund closures hit an estimated $84 billion - more than
quadruple the amount in 2007 - with more than 200 American
funds shuttered last year
By Irwin Speizer
Trading losses and
redemption runs, bankruptcies and government intervention,
accounting issues and the spectacular meltdown of Bernie
Madoff's operation all combined to make 2008 a banner year for
hedge fund blowups, with more than 200 American funds or fund
families shuttered or heading toward liquidation. The total is
more than four times the number from the previous year, when
some 49 hedge funds closed.
The shakeout caused an equally sharp decline in assets, as a
string of billion-dollar-plus funds shut down. Funds that
managed an estimated total of about $84 billion at their peaks
closed or were heading that way in 2008, four-and-one-half
times the $18.7 billion worth of peak assets represented by the
funds on Absolute Return's 2007 closure list. For the
ISSN: 2151-1845 / CDC10004H
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