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Hedge Funds Citadel and Highland Crushed

kengriffin.gifAdd two more massive, iconic hedge funds to the list of those getting blown apart by the market crash.  CNBC's Charlie Gasparino reports:

Citadel confirmed to CNBC that its flagship Kensington and Wellington funds, which hold around $15 billion in assets, are down between 26 percent and 30 percent so far this year. But Chicago-based Citadel denied rumors that it's having difficulty meeting margin calls and is facing mass redemptions. The firm also denied  that it's unwinding any positions.

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Highland, on the other hand, is unwinding positions, according to traders with knowledge of the activity of the big hedge fund company, which  has $14 billion under management. According to one trader with firsthand knowledge of Highland's activities, Highland is selling big blocks of assets; today, Highland settled on 30 cents on the dollar for $20 million to $30 million in bank loans that the firm only last week was trying to unload for 60 cents on the dollar.

More tellingly, the trader said, Highland has put out a bid list for $600 million of loans. It's important to note that it isn't clear whether the bid list represents the beginning of a massive unwinding of positions, or just some major selling in order to meet redemptions.
     - CNBC's David Russell contributed to this report.

See Also: Hedge Funds Crushed In September

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