Everest Capital has $1.3 billion loss, affecting some university endowments

Article Abstract:

Everest Capital Ltd has lost $1.3 billion of the $2.7 billion held in its 2 funds in Jan 1998. Yale, Brown, and Emory Universities are affected by the hedge funds' losses, as is the University of Iowa at Iowa City. The Bermuda-based Everest Captital Frontier Fund and Everest Capital Fund had substantial investments in Russian bonds and Latin American stocks. Fund manager Marko Dimitrijevic said that no lenders were vulnerable to the losses, because both funds had sold enough assets to eliminate leverage, and now had $500 million in cash.

Comment:

Loses $1.3 billion of the $2.7 billion held in Jan 1998, but says lenders are not at risk

Sales, profits & dividends, Bermuda, Mutual Funds (Open End), Company Data, Open end mutual funds, Everest Capital Ltd.

Ellington sold mortage-backed units for $1 billion to satisfy margin calls

Article Abstract:

The latest large hedge fund to suffer losses, Ellington Management Group, sold about $1 billion in mortgage-backed securities inorder to satisfy lenders demand for more collateral, accorking to sources privy to the matter. The sales left the hedge fund with a still sizable portfolio of several billion dollars of mortgage-backed bonds and derivatives according to the same source. The hedge fund is an investment partnership for the wealthy.

Comment:

Sold about $1 billion in mortgage-backed securities inorder to satisfy lenders demand for more collateral

Securities issued, listed, Investment Funds & Trusts, Ellington Management Group

D.E. Shaw to cut 25% of work force in restructuring

Article Abstract:

D.E. Shaw & Co. will lay off about 25% of its employees due to the merger of BankAmerica resulting in the dissolution of their venture. In addition to laying off 264 people, the firm will close its California office and wants to sell or merge its FarSight Financial Services, the online brokerage unit, and D.E. Shaw Financial Technology, another unit.

Asset sales & divestitures, Securities Dealers, Investment Banking and Securities Dealing, Labor force information, Security brokers and dealers, Human resource management, Abstract, D.E. Shaw and Co.