We've noted that hedge fund Peloton was an industry star until just recently, when it was forced to halt redemptions. More details are emerging as the fund winds downs. It seems that the firm's ABS fund went from $2 billion in assets to zero is just a few days, according to the Financial Times. The fund was making long bets on asset-backed securities that it would pay in full, while shorting low-rated subprime-related tranches. In the end, the bankers got cold feet. Margin requirements tripled in some cases. That likely forced a sell off into a market that didn't think much of its portfolio. This is a reminder that the hedge fund industry still faces some challenges. These are not Peloton-specific issues.  

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