The Bayou Hedge Fund, Sam Israel and the $450 Million Facade
By Julie Scuderi - June 20th, 2008
In 1995, Sam Israel III and James Marquez launched the Bayou Group LLC, with initially good intentions to produce high returns for investors. With $300 million of initial funds in the Bayou Hedge Fund Group, Israel, along with CFO Daniel Marino, promised investors that the fund would be worth $7.1 billion in ten years. … Continue Reading
The Amaranth Disaster
By Julie Scuderi - May 6th, 2008
Amaranth is a name synonymous with disaster. Branded as the biggest hedge fund collapse in history, Amaranth lost $6 billion of investor’s money in one week alone.
So what was the culprit behind the fund’s demise? Surprisingly, it all boiled down to one bad bet. The funds we have seen collapsing lately due … Continue Reading
Drake and its Global Opportunities Fund
By Julie Scuderi - May 5th, 2008
After a much publicized debate on their troubled hedge funds, Drake Management will shut down their $2.5 billion Global Opportunities Fund.
Drake had suspended redemptions in December of 2007, after the fund lost 25% of its value and investors rushed to withdraw money. Investors were denied the action of “liquidating investments in a market characterized … Continue Reading
