More Hedge Fund Liquidation Rumors ~ market folly

Thursday, September 4, 2008

More Hedge Fund Liquidation Rumors

Well, it certainly feels like funds are liquidating, doesn't it? After hearing news that the Ospraie Fund was closing its doors yesterday, concern mounted that they wouldn't be the last to do so. And, today rumors were swirling that $14 billion hedge fund Atticus Capital (whom we've covered here on the blog) was liquidating. Not so, claims Tim Barakett, Atticus' founder. Barakett says, "We're certainly not liquidating. In fact we have a large net cash position and are looking for opportunities to invest capital." So, Atticus denies the rumors. And, while they personally might be safe, some other funds most certainly are not. Its hard to believe that Ospraie would be the only fund to blow up in this big mess. The only reason I bring this up is because more liquidations = the market heading even lower.

Source: WSJ

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