By: abadgoodgirl
22 Jun 2005, 09:34 PM EDT
Msg. 229472 of 229557
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Hedge Fund Down - June 21, 2005

Bailey Coates, a London-based hedge fund, became the third fund in a week to announce that it was shutting down operations.

Last week, Aman Capital, a $200-million fund based in Singapore, shut down after posting 18 percent losses.

That was followed last Thursday by the announcement that Marin Capital, a $1.4-billion fund based in San Rafael, California, closed its doors because the convertible securities market was bad and getting worse.

As late as May, Bailey Coates was bent on keeping its Cromwell fund going despite 20 percent losses, according to the New York Post. Investors became alarmed at the bad bets that fund managers had made.

The fund owned large stakes in embattled Morgan Stanley, troubled PC maker Gateway, and NYSE specialist LaBranche. Bad investments reduced the fund’s assets from $1.1 billion to $635 million.

The fund’s general partners, Jonathan Bailey and Stephen Coates, two superstars of London’s financial scene, sent letters to their investors stating that their remaining capital would be returned to them by July 22. The pair received an award as Hedge Fund of the Year at a banquet in January 2004.

The recipients of the sought–after award are proving to be a who’s-who of failed hedge funds, including GLG Partners, which posted a 14.5 percent loss last month.

1. Baily coates hedge fund, London, meets its demise
2. Aman Capital, Singapore, met its demise
3. Marin Capital, California, met its demise
4. ?? Is GLG next?

http://www.redherring.com/Article.aspx?a=12462&hed=TechSpin:+Adelphians+in+Jail§or=Industries&subsector=EntertainmentAndMedia
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