* Quadrangle’s hedge fund blows up, closes. “Hedge fund Quadrangle Equity Investors is planning to wind down amid weak performance and investor redemptions, in a setback for Steven Rattner’s private investment firm. The fund is operated by Quadrangle Group LLC, the New York-based firm run by Mr. Rattner, the former deputy chairman of Lazard. Quadrangle launched the hedge fund in 2006, managing about $500 million at its peak. Run by Robert Donahue, it invests in publicly traded media and communications stocks and has lost about 25% year to date.”
* Demolished Citi may boot chairman Win Bisschof, replace with Dick Parsons. Don’t mean to be rude, but is the chairman really responsible for the $546 billion consumer debt bomb in Citi’s hold?
* CALPERS real-estate holdings smashed. Leverage seemed like such a good idea at the time: The nation’s largest public pension fund, known as Calpers, is paying dearly for its ill-fated decision to become one of the most aggressive real-estate investors among public pensions. The value of Calpers’s investments in land and housing projects across the country had fallen 35%, to about $6 billion, as of June 30…The losses are likely to be larger now because the values were based on appraisals completed at the end of March… Calpers says it expects a loss even greater than 100% for its once high-yielding land and housing investments, thanks to its use of borrowed money on deals.
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