Zwirn to Close Hedge Funds After `Large' Redemptions

Posted: Fri Feb 22, 2008 8:16 pm

D.B. Zwirn & Co., the investment firm that admitted last year to improper accounting, will liquidate its two largest hedge funds after being flooded with more than $2 billion in client redemptions.

http://www.bloomberg.com/apps/.....refer=home

Crank it up!!!!!!!!!!!!!!!!!!1

Dud? Joined: 27 Feb 2008 Posts: 2

Seems this has been coming for awhile. Any idea on whether they survive?

Posted: Thu Feb 28, 2008 5:40 pm

We've been advised that this is more of an orderly shutdown based on an accounting foible than an "implosion" per se.

Not every shutdown is an implosion (for instance, we didn't implode the Tribeca funds).

Dud? Joined: 27 Feb 2008 Posts: 2

Time will tell. Not sure I would believe everything management says.

Posted: Thu Feb 28, 2008 8:06 pm

This was from a third party analyst, not management.

Dud? Joined: 08 Feb 2008 Posts: 20 Location: Cambridge, MA

Crazy to think that an accounting mess-up could close a whole hedge fund. That might have been one one or two portfolio manager's shot at running a large hedge fund.

Posted: Wed Mar 05, 2008 3:28 pm

Well people are jumpy now. It doesn't take much to trigger a run on a hedge fund by investors.

Dud? Joined: 06 Mar 2008 Posts: 1 Location: New York

RichardCWilson wrote:

Crazy to think that an accounting mess-up could close a whole hedge fund. That might have been one one or two portfolio manager's shot at running a large hedge fund.

Did you forget Archeus so quickly and they were much larger!

Guest

DELETED

Dud? Joined: 13 Jan 2009 Posts: 1

The possibility of hedge funds like DBZ's charging performance fees on locked up money has diminished greatly.