Another hedge fund on the ropes

People have been speculating ever since Amaranth imploded about who is next. So the rumor mill cranked into high gear on the news that Narragansett Asset Management, run by Joseph Dowling III, has informed investors it has liquidated about 80 percent of its holdings. It plans to return a "substantial" part of funds to investors. This is really interesting: the firm will remain alive, but Dowling will take a 12 to 18 month vacation. It's unclear why the firm is shutting down. Many suspect a few bad bets, though it may have been much less than scandalous. It may have been that Dowling just couldn't see a way to beat the market. Rather than tread water, why not just go surfing for awhile. And start over later. It's all murky right now.

For more on Narragansett:
- Here's a New York Post article