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January 12, 2009
$100 Million Hedge Fund to Liquidate
Filed under : Hedgetalk
According to a Reuters UK exclusive, hedge-fund firm GMB Capital Management, after loosing more than $50 million, is shutting down Boston-based GMB Low Volatility Fund LP. The fund had more than $100 million in assets.
GMB Capital is run by MIT professor Gabriel Bitran and his son Marco. The father-son team told investors that the hedge fund would rely heavily on Bitran's complicated algorithms to deliver low volatility where prices almost never change, Reuters reported. Instead, they invested with Madoff, making themselves and those who trusted them victims of the Madoff debacle.
Full story available at; Hedge fund shuttering after Madoff bet
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2 Comments so far ...
t is just the beginning of the cascading effect of the Madoff scandal.Funds liquidating, Insurance claims and lawsuits are just the beginning.This calls in for a tougher regulations by the authorities if we need to avoid another “Madoff”.
Comment on January 13, 2009 02:25 amJust wondering why none of these have used any type of principal protection of capital or Asian hedging strategies
Yuri Rutman
Comment on January 13, 2009 01:55 pmhttp://section181.blogspot.com/
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