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Sailfish Capital Partners - Multi-Strat Fixed Income, ...(?)

2008-02-13

Count of distinct funds: 1
Capital base: $2B
Loss: ?

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stories: nytimes.com, finalternatives.com

While details are still sketchy, it appears certain that Sailfish did shut down as of today (via New York Times). We're unclear on how many funds there were (we know of at least one "Multi-Strat Fixed Income fund").

At peak, mid-last year, Sailfish managed almost $2B of funds. From a FINAlternatives article dating Jan. 18 comes a bit more background:

The Stamford, Conn.-based shop’s Multi-Strat Fixed Income Fund declined 13.5% last year, losing more than 12% in August alone, as the credit crisis peaked. Worse still for the hedge fund, the two-year lockup period for its initial investors expired that very month, precipitating a rush for redemptions.

Last month, investors yanked about $400 million from the fund, after the credit market weakness spiked in November. The fund’s performance tumbled another 4.8% in December.

The fund, which had about $1.9 billion in assets as recently as July, now manages just $980 million, a pair of investors told Bloomberg News.

“[Sowood and Bear] lost money primarily through market action, but these were redemptions that were planned to occur when the lockup period ended,” he said, adding that that is where the majority of the assets have gone.

It would appear appropriate then to say that Sailfish imploded through market inaction (lack of liquidity when redemptions came on).

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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.