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Ascot Partners LP - equities, other funds

2008-12-19

Count of distinct funds: 1
Capital base: 1.8 billion
Loss: 100%?

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stories: bloomberg.com

Ascot Partners LP, another fund run by Ezra Merkin (see the Gabriel Partners LP implosion), Chairman of GMAC LLC, will be liquidating in the wake of incurring losses due to the Bernie Madoff ponzi fund implosion. In the case of Ascot Partners, the loss apparently is "virtually" everything. Per Bloomberg:

Suspending withdrawals and selling remaining assets is the fund's "only realistic option" after losing 39 percent this year through Nov. 30, Merkin said in a Dec. 18 letter to clients. The process will take several years to complete because the assets are illiquid, Merkin wrote.

Merkin's New York-based Gabriel Capital and Ascot Partners LP were sued this week for investing with Madoff. The investors in a class-action suit say Merkin misled them by them by claiming he put their money in a "diverse portfolio of securities." Ascot lost virtually all of its $1.8 billion of assets, according to a separate lawsuit.

We are unsure at this time how substantial Gabriel Capital's losses are. If you can provide any information regarding this implosion, please comment below or email us.

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Important: This fund is on our list of hedge funds that have "imploded" (see also ailing lenders). However, please note that "imploded" is a somewhat subjective. The "imploded" list contains hedge funds (or other unregulated and autonomous speculative investment funds) which have gone through some sort of permanent adverse change. This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid mark-downs in net asset value; or abnormal "bail-out" by corporate parents or peers in order to avoid write-downs and provide liquidity. The funds are of any type and sector.