Current news for this fund:
Peloton ABS Master Fund, Multi-Strategy Fund - ABS Fund
Count of distinct funds: 2
Richard Wilson forwarded us some funny, educational material on Peloton.
The Times Online has reported that Peloton Partners will also be liquidating the Multi-Strategy Fund, which had been heavily invested in the ABS Master Fund. Per the Times:
TimesOnline has the graphic details of Peloton's implosion:
The lesson seems to be that you should never underestimate an Austrian debt deflation... it's never just in one area; it is perfectly capable of extending to all credit markets. That, incidentally, includes the market of one's own margin debt.
Original Writeup, 2008-02-28:
From FT - Alphaville comes reports that Peloton Partners' ABS Fund has suspended redemptions and is being liquidated after seeing NAV values fall. The extenct of the losses at the ABS Fund have yet to be disclosed. From FT:
The article further includes a letter from Peleton Partners to investors of the multi-strategy fund (The one invested in the ABS fund being liquidated). In Peleton's own words:
Finally, we have some anonymous commentary with regard to Peloton Partners' choice to suspend NAV calculations on the ABS Fund:
You know the most interesting thing to me about this blow up is that they are suspending calculation of NAV, which I've never seen before. It is not that it hasn't happened much (don't know), it's just that it effectively screws your limited partners big time, since they in turn can't calculate their NAVs either, and it forces them to side pocket the investment. It essentially guarantees the fund management company is going out of business on ALL funds, since no one will ever invest with you again after you do that.
It will be interesting to see if our tipster's prediction holds true. If you hear more, please let us know!
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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.