Hedge Fund SageCrest Files For Bankruptcy
Wednesday, August 20, 2008 : PermalinkWest Palm Beach (HedgeCo.net) – In an effort to head off a forced asset sale, Windmill Management’s SageCrest Finance and SageCrest II filed for Chapter 11 bankruptcy after its assets fell sharply.
The hedge fund filed at U.S. Bankruptcy Court in Bridgeport, Conn. In a letter to investors, The fund said that the bankruptcy process would give SageCrest the time necessary to conduct an orderly liquidation of their assets to maximise the return to investors.
The fund described its investment strategy as making short-term loans to small- and mid-sized firms that cannot secure them from banks and specialty lenders. "Our position in a market where lending opportunities continue to outpace sources of capital provides an ideal point of departure for growth." The SageCrest website says, "Our investments target asset-rich and undervalued situations overlooked by, and with limited access to, the mainstream capital markets."
In its bankruptcy filing, SageCrest claimed fewer than 49 creditors and debts of between $1 million and $10 million. The hedge fund, which once boasted assets of as much as $650 million, said it now had between $50 million and $100 million.
Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net
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September 1st, 2009
10:41 am
Thanks for the great post!
October 22nd, 2009
6:15 am
Short Term Loan
Short term loans are loans given to the needful individuals on short notice, which the borrower can pay back over time. A short-term lender will analyse the financial data of the borrower before agreeing to offer the loan. The borrower must be able to show that the loan can be repaid in a certain period of time. Short-term loan comes in three basic forms: payday loans, student loans, and business loans.Short-term loan is a popular business model among those with a little cash and no conscience. These loans have high interestrates and must be paid back within a few weeks, month, or an year. These loans can have a maturity date as early as 60 to 120 days from the date of inception of the loan.
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Hedge Fund SageCrest Files for Bankruptcy
Tuesday, August 19, 2008 : PermalinkNew York (HedgeCo.Net) – Greenwich-based hedge fund SageCrest Finance has filed for Chapter 11 bankruptcy protection. The credit opportunity fund, which grants short-term loan to companies left with few financing alternatives, said its recent losses were due to the condition of the debt markets coupled with mounting lawsuits.
The fund once managed around $900 million. Current assets are listed at $50-$100 million. In addition to providing short term capital to businesses, SageCrest also extended loans to plaintiffs in slip-and-fall lawsuits. They also dabbled in the art world and are caught in a nasty battle mired with scandal to retrieve $40 million which they claim is owed to them.
SageCrest is run by Alan and Philip Morton. The fund has had its recent share of bad press, with two investors suing the company for various reasons this year. Westerly Capital filed a suit in June claiming the managers ran the fund to their own benefit and to the detriment of its clients. This followed an earlier suit by Wood Creek Capital Management, who claimed that SageCrest did not adhere to its redemption policy.
In a petition filed on Sunday in U.S. Bankruptcy Court in Connecticut, SageCrest listed debts in the range of $1 million to $10 million.
Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net
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Reader Comments:
September 1st, 2009
10:41 am
Thanks for the great post!
October 22nd, 2009
6:15 am
Short Term Loan
Short term loans are loans given to the needful individuals on short notice, which the borrower can pay back over time. A short-term lender will analyse the financial data of the borrower before agreeing to offer the loan. The borrower must be able to show that the loan can be repaid in a certain period of time. Short-term loan comes in three basic forms: payday loans, student loans, and business loans.Short-term loan is a popular business model among those with a little cash and no conscience. These loans have high interestrates and must be paid back within a few weeks, month, or an year. These loans can have a maturity date as early as 60 to 120 days from the date of inception of the loan.
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