Hedge Fund Losing Big on MF Global (MF) Bet
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Losing her mind today might be Debra Fine, founder of hedge fund Fine Capital.
In the August quarter, the fund raised its stake in MF Global Holdings (NYSE: MF) by nearly 2 million shares to 10,051,845 shares, or about 6.1 percent of total outstanding, according to data from Fine's 13D and Hedge Fund Insider.
With MF closing at $7.74 at the end of June, the position was worth about $77,801,280 or so. With MF Global trading at $1.30 per share Friday, that means a potential hit of about $64.7 million, or nearly 7.8 percent of Fine's total portfolio. The position would now be valued at roughly $13.07 million.
MF Global received some pressure Thursday, following a downgrade of long-term debt at Moody's, as well as headlines it was drawing-down capital facilities.
Of course Ms. Fine could have offset losses in MF with hedges. But do hedge funds really hedge anymore?
In the August quarter, the fund raised its stake in MF Global Holdings (NYSE: MF) by nearly 2 million shares to 10,051,845 shares, or about 6.1 percent of total outstanding, according to data from Fine's 13D and Hedge Fund Insider.
With MF closing at $7.74 at the end of June, the position was worth about $77,801,280 or so. With MF Global trading at $1.30 per share Friday, that means a potential hit of about $64.7 million, or nearly 7.8 percent of Fine's total portfolio. The position would now be valued at roughly $13.07 million.
MF Global received some pressure Thursday, following a downgrade of long-term debt at Moody's, as well as headlines it was drawing-down capital facilities.
Of course Ms. Fine could have offset losses in MF with hedges. But do hedge funds really hedge anymore?
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