Drake considers liquidating all hedge funds
NEW YORK, March 12 (Reuters) - Drake Management, which last year managed $5 billion in hedge fund assets, told investors on Wednesday that it is considering winding down its three hedge funds, citing "challenging market conditions."
The news came in a letter sent by Drake to its investors. A copy of the letter was obtained by Reuters.
The funds, which invest in fixed income globally, include Drake Global Opportunities, Drake Absolute Return Fund and Drake Low Volatility Fund.
The New York-based firm said in the letter that Global Opportunities has had "sharply negative performance" in the face of "extreme volatility of certain capital markets over the last six months." The fund was down nearly 25 percent in 2007.
Drake said it is polling investors for input on whether it should continue the fund, start a new fund, or wind down Global Opportunities.
"Given the challenging market conditions, Drake is also considering substantially similar options for its other hedge funds, the Drake Absolute Return Fund Ltd and the Drake Low Volatility Fund Ltd..." Drake said in the letter.
Drake officials did not return phone calls seeking comment. (Reporting by Dane Hamilton; editing by John Wallace) (Reuters email: dane.hamilton@reuters.com. 646 223 6161. Reuters messaging: dane.hamilton.reuters.com@reuters.net)
