Basso Capital says facing losses in most strategies

By Dane Hamilton

NEW YORK, May 2 (Reuters) - Basso Capital Management has lost money in nearly all strategies of the $2.57 billion hedge fund group in the year through March, the company said, citing a common industry challenge.

Basso, which trades equity, fixed income and convertible arbitrage strategies, fared worst in credit strategies mostly involving non-investment grade bonds, according to a May 1 letter the firm sent to investors.

Basso's Credit Opportunities Fund lost 2.37 percent in March, bringing its losses to 14 percent in the year through March 31, the letter said.

Other strategies fared better. Convertible arbitrage strategies in the Basso Partners and Basso Investors funds lost 2.5 percent in March, putting both funds down 2.8 percent for the year through March, according to the letter obtained by Reuters.

And its two Basso Multi-Strategy funds lost nearly 1.1 percent in March, leaving both down 4.75 percent for the year through March, the letter said.

Stamford, Connecticut-based Basso, which is headed by CEO Howard Fischer, declined to comment.

The size of each fund was not disclosed, but the firm has total assets of $2.57 billion, according to data filed with the U.S. Securities and Exchange Commission.

Hedge funds in nearly all strategies lost money this year on average, hammered by falling equity and bond markets in the wake of a credit crunch starting in mid-2007.