Fitch predicts ongoing subprime losses for hedge funds


Banks and hedge funds have not yet suffered all losses that will result from exposure to subprime mortgage-related assets, Fitch Ratings said in a report this week. Fitch estimates that banks have disclosed 80% of losses, but that many hedge funds are only now realizing losses.

“It should also be noted that at the outset of the crisis, hedge funds that were active in this market had appeared to have weathered the storm. However, as the crisis deepens, given the time lag in reporting and issues surrounding valuations, many hedge funds are now reporting higher losses,” the report