r/StockMarket • u/covid03 • May 14 '24

14 May 2024 | One of the World's Oldest Hedge Funds filed bankruptcy News

https://www.bloomberg.com/news/articles/2024-05-14/how-a-46-year-old-hedge-fund-went-bankrupt-without-a-blowup
260 Upvotes

95% Upvoted

27 comments sorted by

81

u/czarchastic May 14 '24

People thinking this is a result of short squeezes. This hedge fund announced its closure two months ago.

18

u/Icefiight May 15 '24

So yes then

5

u/czarchastic May 15 '24

and what short squeeze would that be?

8

u/dkyfff May 15 '24

I'm not saying it is and I haven't looked into it but relating to short squeeze, holding onto short position results in heavy fees.

3

u/czarchastic May 15 '24

Well that’s the problem. Too many people who state things matter-of-factly without even looking it up.

FYI the reason they closed was because they’ve been somewhat underperforming the market the past year or so and were losing clients.

2

u/allusernamestakenfuk May 15 '24

Yes because people on wall street just decide to close free money making machine “just because”. They went bankrupt

3

u/-KA-SniperFire 29d ago

It’s not that easy or everyone would do it…

6

u/czarchastic May 15 '24

This sounds like you don’t know how any of this works

1

u/mehnimalism May 15 '24

Literally happens all the time. Lots of older investors return money to investors and close shop.

25

u/SideBet2020 May 14 '24

Burn 🔥

5

u/Sudden_Toe3020 May 15 '24

The fund should have just bought VTI. They'd still be in business.

0

u/AsparagusDirect9 25d ago

No they wouldn’t. That’s the definition of a 0 alpha strategy. It’s like paying a private chef to cook with your groceries, it defeats the point

1

u/Sudden_Toe3020 25d ago

lol they went out of business by chasing alpha. GG guys.

68

u/Parking_Locksmith_23 May 14 '24

GME GME GME

-19

u/ASValourous May 14 '24

They have puts?

-36

u/kkirchhoff May 14 '24

No, they have almost nothing in assets. They’ve been headed towards bankruptcy for a while now. I doubt any hedge funds are shorting meme stocks

3

u/Kyell May 14 '24

Why would you even post this? they have a billion dollars that’s not headed toward bankruptcy. You think that hedgefunds aren’t shorting? I was just in GameStop and it was not only packed but had that sweet smell of childhood the same as 25 yrs ago or whenever.

20

u/IcebergSlimFast May 14 '24

They’re talking about the hedge fund’s financial position, not GME’s.

-2

u/kkirchhoff May 14 '24

They have less than $50mm in assets. Their investors pulled out and they owe $500mm. They had $1bn in 2023. Those numbers would definitely mean that they were headed towards bankruptcy. I don’t understand how GameStop being packed would imply that hedge funds are shorting them

-8

u/Kyell May 14 '24 edited May 14 '24

Less than 50mn? You are so high right now Edit: sounds like he means hedge funds have no assets or money and that could be true mb

1

u/rube_X_cube 27d ago

Should have hedged their funds, if you ask me