Anchorage Capital Is Closing $7.4 Billion Flagship Hedge Fund – The Wall Street Journal

Anchorage Capital Group, one of the biggest hedge-fund investors in distressed debt, is closing its flagship fund after 18 years and returning the $7.4 billion it manages to clients, citing a market environment in which cheap money has helped keep stock and bond prices elevated while suppressing corporate defaults.

The credit fund, Anchorage Capital Partners, is suspending clients’ ability to get their money back as it is wound down, the New York firm told clients in a letter Wednesday that was viewed by The Wall Street Journal. Anchorage didn’t give a date by which clients would receive all of their money back from the fund, which holds sizable positions in companies including Hollywood movie studio MGM Holdings Inc. and clothing seller J.Crew Group.

Leave a comment

Your email address will not be published. Required fields are marked *