New York (HedgeCo.Net) – Over $84 billion worth of U.S. hedge funds shut down last year, compared to just $18.7 billion in 2007, according to the latest data published by Absolute Return Magazine, a unit of HedgeFund Intelligence. More than 200 funds closed up shop in 2008, with 20 percent or $16 billion of those assets deriving from Madoff feeder funds.<\/p>\n
The largest fund closure was Fairfield Greenwich Group’s Fairfield Sentry fund, which once managed $6.9 billion in assets, and fed almost all of their investments to Madoff funds. The other major Madoff feeder funds that faltered included Tremont Group’s Rye funds, which once managed $3.1 billion and Kingate Management’s Kingate Global Fund which was worth about $2.7 billion.<\/p>\n
The largest failure unrelated to the Madoff scandal was Drake Management, who was forced to close funds that once oversaw $4.7 billion. Citigroup’s Old Lane Partners, another Multi-strategy hedge fund founded by its Chief Executive Vikram Pandit, decided to liquidate after unimpressive returns and mounting write downs by the bank. It once managed $4.4 billion in assets.<\/p>\n
Here are the top 10 hedge fund closures of 2008 according to Absolute Return Magazine:<\/p>\n
1. Fairfield Greenwich Group, Fairfield Sentry
Madoff feeder fund
6.9 Billion<\/p>\n
2. Drake Management, Global Opp, Low Volatility, Abs. Return
Macro\/Multi
4.7 Billion<\/p>\n
3. Citigroup, Old Lane Partners
Multistrategy
4.4 Billion<\/p>\n
4. D.B. Zwirn, Zwirn Special Opp. Fund
Multistrategy
4.0 Billion<\/p>\n
5. Tontine Capital Management, Tontine Capital, Tontine Partners
Equity Long\/Short
4.0 Billion<\/p>\n
6. Ospraie Management, Ospraie Fund
Commodities
3.8 Billion<\/p>\n
7. Highland Capital Management, Crusader, Highland Credit
Credit
3.5 Billion<\/p>\n
7. Peloton Partners, Peloton ABS, Peloton Multistrategy <\/p>\n
ABS, Multistrategy
3.5 Billion<\/p>\n
9. Tremont Group Holdings, Rye Investment Management
Madoff feeder fund
3.1 Billion<\/p>\n
10. Kingate Management, Kingate Global Fund
Madoff feeder fund
2.7 Billion<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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