WEST PALM BEACH, FL (www.hedgeco.net) – Highbridge Capital management has told its investors that it did not suffer big losses in the structured capital markets as rumored recently. According to thereleased information, the firm�s flagship product, Highbridge Capital Corp was actually among the few hedge funds reporting gains for the 2005 year-to-date. The firm said the portfolio is up 0.41percent for the year so far.
Last week market speculators rumored that the fund suffered heavy losses in the structured capital markets following the downgrading of the bonds of both Ford motors and General motors. Rumors spread that the firm was among several hedge funds which suffered heavy losses from the CDO markets. The firm was quick to confirm that such rumors had no merit.
Highbridge founders Glenn Dubin and Henry Swieca wrote in a May 10 letter to their investors that, �Recent volatility in the structured credit markets is apparently related to the unwinding of an unprofitable ‘CDO tranche correlation trade’ by one or more parties�. The principals further said, “Highbridge has no exposure to the trades�, as rumored.
Highbridge Capital Management oversees over $7 billion in total investor assets.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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