NEW YORK (Reuters)- Drake Management, which manages nearly $5 billion in hedge fund assets, told investors on Wednesday that it is considering liquidating all three of its hedge funds, citing "challenging market conditions."
The New York-based fixed income trader, which was founded in 2001 by PIMCO and BlackRock executives, said it has been hammered by volatile credit markets, pushing down returns in its flagship, $3 billion Global Opportunities Fund and its smaller Absolute Return Fund.
Global Opportunities was down 24.55 percent in 2007, while Absolute Return was down 14.36 percent, according to investors who have seen the results. Those two and another fund, Low Volatility, are overseen by managers Anthony Faillace and Steve Luttrell.
