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section heading icon     events

This page highlights some landmarks in the history of the hedge fund sector, including the significance of coverage in journals such as Institutional Investor.

subsection heading icon     beginnings

1949

Alfred Winslow Jones launches first hedge fund with US$100,000

subsection heading icon     1970s

1966

Fortune
claim that Jones' funds have returns substantially greater than leading mutual funds spawns competitors

1968

est 140 hedge funds in operation in US

1969

bear markets sees many funds suffer losses and capital
withdrawals

1974

further losses and closure of funds in bear market

1985

est 37 US hedge funds

subsection heading icon     revival?

1986

Institutional Investor reports Tiger Fund had compounded annual returns of 43% in preceding six years

1990

est 231 US hedge funds with US$6.5bn under management

1991

est 310 US hedge funds with US$10bn under management

1992

est 442 US hedge funds with US$18bn under management

1993

est 644 US hedge funds with US$35bn under management

1994

est 856 US hedge funds with US$41bn under management

1995

est 1027 US hedge funds with US$50bn under management

1996

est 1076 US hedge funds with US$59bn under management

1997

est 987 US hedge funds with US$65bn under management

est 291 US CTA funds with US$17bn under management

1998

Long-Term Capital Management (LTCM) bailed out by US government after US$4bn losses in Russian government bonds

2000

reorganisation of Tiger Funds

Manhattan Investment Fund collapses after US$400m losses

reorganisation of Quantum Fund

2004

Bailey Coates Cromwell Fund wins Eurohedge' Best New Equity Fund award, closes in 2005 after 20% loss within month

2005

Bayou Fund collapses amid US$300m fraud

Canadian regulators shut Portus (C$800m in assets) amid allegations its managers misused investors' money

Marin Capital (US$1.7bn capital) closes after GM bonds downgraded to junk

Aman Capital (est 2003) closes after major losses and capital withdrawals

848 hedge funds liquidated during 2005

2006

Amaranth Advisors LLC loses US$6.5bn betting on natural gas prices

Archeus Capital Management closes US$2.65bn Animi Master Fund

Sagamore Hill Capital closes US$2.6bn fund

Saranac Capital closes US$2.2bn Saranac Arbitrage fund

subsection heading icon     upsets

2007

IPO of Carlyle Capital

Bear Stearns pledges US$3.2bn to bail out two hedge funds

US$6.7bn Cheyne Finance goes into receivership

2008

Peloton Partners forced to liquidate its largest funds (US$2bn plus)

693 hedge funds closed in first nine months of 2008

Carlyle Capital (managing US$21.7bn assets) defaults on US$16.6bn

US$300bn wiped off US equity markets, Federal Reserve and JPMorgan Chase rescue Bear Stearns

344 hedge funds liquidated in third quarter of 2008

US$50bn collapse of Madoff's ponzi scheme






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version of March 2008
© Bruce Arnold
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