MSN MoneyCentral- Drake Management, one of the best-performing hedge funds last year, is in crisis talks with investors in its flagship fund following heavy losses from bets against US Treasuries,according to several investors.
New York-based Drake, which had $13bn under management before hitting problems in the autumn, has appealed to customers of the Global Opportunities fund not to withdraw their money in an attempt to avoid cashing out its lossmaking positions.
According to investors, the fund fell almost 14 per cent in November after a fall of more than 10 per cent in October, hurting the confidence of investors attracted by last year’s skyrocketing returns.
