Jun 16, 2005

Smart Money Walks Away

From Marketwatch:
Marin Capital Partners, a hedge fund that once oversaw about $2 billion in assets, is shutting down because the firm sees few opportunities in the convertible arbitrage and credit arbitrage strategies it follows.

Marin, which has moved most of its investments into cash, will stop trading at the end of June and return money to investors in early July, according to a letter the firm sent to investors this week.

"Due to a lack of suitable investment opportunities in the current market environment, and in our view an unfavorable risk/ reward situation in the relative value strategies we trade, Marin has moved the fund's portfolio largely into cash," Marin said in its letter, a copy of which was obtained by MarketWatch.
Marin, founded in 1999 by John Hull and J.T. Hansen, said it was proud of its record, citing the performance of its flagship Tiburon Fund which had returned more than 98% with relatively low volatility since inception, according to the firm's letter.

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