Caught in the wreckage


Following private equity into deals, hedge funds now find themselves stuck with losing propositions

By Pete Gallo

Collapsed leverage buyouts are taking their toll on some big-name hedge funds that have followed private equity into the top dozen deals that have come undone.

Funds affected by the LBO fallout include D. E. Shaw, Citadel Investment Group, Farallon Capital Management, Marathon Asset Management, Gabelli Funds, Stark Offshore Management, Satellite Asset Management, Maverick Capital, Third Point and Silver Point Capital.

With the stock market teetering and credit still scarce, investors think it's too early