Category Archives: Hedge Fund Closures

Funds that had to shut their doors due to dismal performance or some other event

The Bayou Hedge Fund, Sam Israel and the $450 Million Facade

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. However, the fund almost immediately started […]

The Amaranth Disaster

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 to the subprime mortgage crisis and the […]

Drake and its Global Opportunities Fund

After a much publicized debate on their troubled hedge funds, Drake Management has decided to shut down its $2.5 billion Global Opportunities Fund (summer of 2008). 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 […]