Hedge Funds Citadel and Highland Crushed

Add 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 per cent and 30 per cent so far this year. But Chicago-based Citadel denied rumours that it’s having difficulty meeting margin calls and is facing mass redemptions. The firm also denied  that it’s unwinding any positions.

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

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

clusterstock-us