Stonewall Capital, a $600 million hedge fund run by former SAC Capital trader Stephen Yagel, is shutting down. The move comes as a surprise to many in the industry, as Stonewall had been one of the more successful hedge funds in recent years. This blog post will explore the reasons behind the shut-down, as well as the implications it has for the industry as a whole.
What caused Stonewall Capital to shut down?
Stonewall Capital, a $600 million hedge fund, is the latest victim of the industry-wide implosion. The fund is shutting down after suffering heavy losses in the stock market sell-off. The fund’s problems began in earnest in August, when it lost 15% of its value amid a broad market rout. That was followed by an even sharper decline in September, when the fund fell by 30%. The final straw came last week, when Stonewall suffered catastrophic losses on a bet that the stock market would rebound. The fund was heavily invested in futures contracts that were betting on a rebound in the S&P 500 index. When those bets went sour, Stonewall was forced to liquidate its assets at a deep discount.
What are the implications of this shutdown?
The Stonewall Capital shutdown is the latest in a string of bad news for the hedge fund industry. In the past year, several high-profile hedge funds have shut down, including funds run by billionaires David Tepper and Bill Ackman. The shuttering of Stonewall Capital comes as the hedge fund industry is facing increased scrutiny from regulators and investors. The implications of the Stonewall Capital shutdown are far-reaching. For one, it adds to the mounting evidence that the hedge fund industry is in trouble. In addition, the shutdown will likely add to the pressure on regulators to crack down on hedge funds. And finally, it could prompt more investors to pull their money out of hedge funds, further exacerbating the industry’s woes.
What other hedge funds have shut down recently?
Other notable hedge funds that have shut down recently include Falcon Edge Capital, JAT Capital Management, and BlueMountain Capital Management. Each of these firms had been in operation for over a decade before ceasing operations. Stonewall Capital, founded in 2006, is the latest hedge fund to shutter its doors. The New York-based firm announced its closure on Wednesday, citing “challenging market conditions.” This is yet another example of the tough times that hedge funds are facing. In addition to Stonewall Capital, other notable hedge funds that have shut down recently include Falcon Edge Capital, JAT Capital Management, and BlueMountain Capital Management. Each of these firms had been in operation for over a decade before ceasing operations.