Obvious, but good to note:

Hedge fund investors pulled $150 billion out of funds. It’s about time. Too much money in too many funds charging too much fees. But I’m biased.

http://www.marketwatch.com/news/story/Investors-pull-record-152-billion/story.aspx?guid=%7B1B3BF098%2D4751%2D4300%2DBB7F%2DB752363D29E2%7D&dist=hplatest

Citadel Seeks to Raise $500 Million by Opening Fund to New Cash

By Katherine Burton

Dec. 5 (Bloomberg) — Citadel Investment Group LLC is opening a $2
billion hedge fund to new cash from clients and plans to have it buy
stocks from the firm’s two biggest funds, which have lost almost half
their value this year.

The firm, run by Kenneth Griffin, hopes to raise as much as $500
million before the end of the year, according to a letter sent to
investors. Clients will be allowed to put money in the Citadel
Tactical Trading fund, whose returns exceeded 40 percent this year
through November.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJh97l.VMJlo&refer=home

Citigroup liquidates fund that fell 53% in a month

By Henny Sender and Francesco Guerrera in New York
Tuesday Nov 18 2008 19:15

Citigroup (NYSE:C) is liquidating its Corporate Special Opportunities
hedge fund after it lost 53 per cent of its value last month, marking
the ninth time in recent months that the bank has had to close or
rescue a fund in its alternative investment unit.

The collapse represents the latest setback for Citi’s chief executive,
Vikram Pandit, a former head of the alternative investment unit, who
revealed plans on Monday to cut the bank’s headcount by 52,000. Citi
shares fell 6 per cent on Tuesday to $8.36, giving it a market value
of $45.5bn.

CSO, which managed almost $4.2bn at its peak, has a net asset value of
about $58m and debt of about $880m, investors say. People familiar
with the matter say investors in the fund are likely to receive no
more than 10 cents on the dollar.

Citadel Hedge Funds Counterparty Rating Cut by S&P

By Katherine Burton

Nov. 18 (Bloomberg) — Citadel Investment Group LLC, the Chicago-based
investment firm run by Kenneth Griffin, had the counterparty rating
for its two biggest hedge funds cut by Standard & Poor’s after posting
their worst losses.

The ratings were cut to BBB from BBB+ on the Kensington Global and
Wellington funds, which tumbled about 40 percent this year. Further
reductions are possible if the funds, which oversee $13 billion in
assets, don’t improve their investment returns, S&P said today in a
statement.

http://www.bloomberg.com/apps/news?pid=20601087&sid=axLc1BT2ZXbA&refer=home

This is even hitting the untouchable.

SAC Slashes Staff After Losses
November 11, 2008

Hard times are hitting SAC Capital Advisors, and the hedge fund giant
is tightening its belt.

Greenwich, Conn.-based SAC plunged 11% last month, leaving it down 18%
this year, and leading founder Steven Cohen to liquidate half of the
firm’s equity holdings last month. Now, he’s slashing jobs, as well as
portfolios.

Last week, Cohen dismissed a team of seven portfolio managers and
assets, Fortune magazine reports. The job cuts come at CR Intrinsic
Investors, one of the firm’s four main portfolios, which was
especially hard hit in October, including a bet against German
carmaker Volkswagen, which rallied on the news that Porsche was
seeking to gain a majority stake in VW.

Fortune reports that CR Intrinsic will remain open, but is undergoing
a “reorganization.”

Tontine Capital to Liquidate Two Stock Hedge Funds After Losses

Nov. 11 (Bloomberg) — Tontine Associates LLC, the investment firm
run by Jeffrey Gendell, plans to liquidate two stock hedge funds after
they lost more than two-thirds of their value this year, people
familiar with the matter said.

Gendell gave no timetable for unwinding the funds, Tontine Capital
Partners LP and Tontine Partners LP, during a conference call
yesterday with clients, according to the people, who asked not to be
named because the information is private. Options for raising cash
include selling the funds’ investments privately or pushing the
companies in which they are the biggest shareholder to sell
themselves.

Tontine, based in Greenwich, Connecticut, had been one of the
industry’s best performers, with its four funds returning an average
of 38 percent annually since opening. Tontine Capital Partners plunged
77 percent this year through October and Tontine Partners fell 67
percent through September.

Farallon Flagship Fund Lost 23.8% Through October, Sells Stocks

Nov. 6 (Bloomberg) — Farallon Capital Management LLC’s
biggest hedge fund fell 23.8 percent this year through October,
according to two people familiar with the matter, all but
ensuring its first annual loss since opening 22 years ago.

The firm, which oversees $30 billion, has been selling
stocks to meet expected clients withdrawals and invest in
distressed debt, said the people, who asked not to be identified
because the information is private. The flagship Farallon
Capital Partners LP fund increased its cash holdings by
30 percentage points.

http://www.bloomberg.com/apps/news?pid=20601087&sid=auGq0YLJidlg&refer=home

Posted by email from thehardtrade2′s posterous

Thiel’s Clarium Hedge Fund Declines 18% in October

Nov. 5 (Bloomberg) — Clarium Capital Management LLC, the
hedge-fund firm run by PayPal co-founder Peter Thiel, slumped 18
percent in October, its biggest monthly decline, because of
losses on bonds.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3fOcp0Q0hJQ&refer=home

Posted by email from thehardtrade2′s posterous