Mr Gently Benevolent
03-20-2009, 03:32 AM
Weavering Capital collapses over derivatives position
By James Mackintosh
Published: March 19 2009 23:51 | Last updated: March 19 2009 23:51
A $639m (£440m) London hedge fund collapsed on Thursday night after the discovery that the main asset of Weavering Capital’s flagship fund was a $637m derivatives trade with an offshore company controlled by the fund’s founder and chief executive.
Weavering Capital called in administrators on Thursday and its Weavering Macro Fixed Income fund was put into liquidation in the Cayman Islands, after claims the trade could not be paid. Weavering froze the fund a week ago after discovering the position and calling in PwC to investigate.It's going to be a tough year for hedge funds in the UK with lots of very bitter partners in these funds seeking punitive actions.
http://www.ft.com/cms/s/0/982b4e44-14ce-11de-8cd1-0000779fd2ac.html
By James Mackintosh
Published: March 19 2009 23:51 | Last updated: March 19 2009 23:51
A $639m (£440m) London hedge fund collapsed on Thursday night after the discovery that the main asset of Weavering Capital’s flagship fund was a $637m derivatives trade with an offshore company controlled by the fund’s founder and chief executive.
Weavering Capital called in administrators on Thursday and its Weavering Macro Fixed Income fund was put into liquidation in the Cayman Islands, after claims the trade could not be paid. Weavering froze the fund a week ago after discovering the position and calling in PwC to investigate.It's going to be a tough year for hedge funds in the UK with lots of very bitter partners in these funds seeking punitive actions.
http://www.ft.com/cms/s/0/982b4e44-14ce-11de-8cd1-0000779fd2ac.html