Another hedge funds bites the dust

The gravestone of hedge fund SageCrest Done might read "done in by its creditor." Apparently, Deutsche Bank told its client to sell assets at a discount to pay off a $7 million credit line, reports the Financial Times. That left Chapter 11 as the only option. The Greenwich, CT fund specializes in asset-backed financing for smaller companies. This is just one in a string that SageCrest has suffered. The fund ran into trouble when several big loans soured, including ones to finance art purchases in New York. One question is whether hedge funds are in for more turbulence. SageCrest is something of a special case, but July and August have been bad months. The FT says some funds are under pressure because of long energy positions combined with short financial positions.

For more:
- here's the FT article

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