Category Archives: Hedge Fund Events

Events that rocked the hedge fund world

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 […]

The Subprime Mortgage Crisis – What Happened

In 2007, it was impossible to turn on the news without hearing about one of two things. Britney Spears, or the subprime mortgage crisis. While both debacles got an equal share of press and public scrutiny, the subprime mortgage crisis is still reeking havoc on the economy, and so far, has cost banks upwards of $285 billion. It was the […]

Bear Stearns – The domino effect that began with the hedge fund collapse

When most people think of Bear Stearns, they think of its recent collapse and the resulting purchase by JPMorgan Chase. However, the demise of Bear Stearns can really be traced back to two failed hedge funds during the summer of 2007 which created a domino effect on the entirety of the company. Let’s take a look back. Few hedge fund […]