Citadel Takes Over Most Sowood Assets After 50% Loss

http://www.bloomberg.com/apps/news?pid=20601087&sid=afhc_J7oYvCQ&refer=home

edit: better report

http://www.ft.com/cms/s/d8488074-3e...uid=e8477cc4-c820-11db-b0dc-000b5df10621.html

 

Wow, when will this stop. After hour, MTG report they might lose up to $500+ mil on their investment.

 

A VERY significant event this is.

 

From Reuters:

Maybe a hint at the price action of Friday's close!

 

It will end when finally even "so-called" hegde fund managers are WILLING to accept, that it is even their DUTY to "hedge" their portfolios !! And when they learn to identify what ET participants are discussing every single day : the use of sound MONEY MANAGEMENT techniques ! I am NOT proud of my collegues !

 

Letter to investors:

 

no. you are very wrong here, hedge fund is for YOU the client to HEDGE your PORTFOLIO. Hedge funds normally don't hedge themselves but rather shoot for outsized gains. a hedge fund should only be used by you to HEDGE your other investments--or potentially as a high risk/high return portion of your assets.

regards,

surf

 

I like the part about.............."the non-performance of offsetting hedges". How much of a discount did Citadel get to takeover the fund?

 

That's the rub. no one knows, hence, there still is, I guess uncertainty is not strong enuf a word, ignorance, as to the pricing of such assets.

 

Yes, Yoda. Citadel seems to be making all the $$ as an MBS vulture.