West Palm Beach (HedgeCo.Net) – Jeff Larson, former head of the collapsed Boston based Sowood Capital Management, is in talks to launch another hedge fund. Sowood closed up shop last July after losing $1.6 billion of investors money, in what resulted in one of the biggest hedge fund debacles to date. <\/p>\n
The new hedge fund is expected to be slightly smaller than Sowood and so far, Larson has received interest ranging from $250 million to $500 million from investors. It will be similar to Sowood’s investment strategy in that he intends to make it “market-neutral.”<\/p>\n
Sowood used heavy leverage to invest in corporate debt, but the subprime mortgage crisis made the values of those debts plummet. The market reacted in a way which virtually made all of Larson’s hedges that he had in place, ineffective. <\/p>\n
However, the Macalester grad is unlikely to garner support from the same investors who supported him the first time.<\/p>\n
"You entrusted us with the management of your money, and we lost a lot of it, to say the least," Larson said. "No apology is sufficient." <\/p>\n
Larson successfully ran the Harvard University endowment fund before starting Sowood in 2004. The endowment was Sowood’s largest client at its launch and ended up losing $350 million in the fund.<\/p>\n
Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net <\/p>\n
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! West Palm Beach (HedgeCo.Net) – Jeff Larson, former head of the collapsed Boston based Sowood Capital Management, is in talks to launch another hedge fund. Sowood closed up shop last July after losing $1.6 billion of investors money, in what […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7509","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/7509","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=7509"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/7509\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=7509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=7509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=7509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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