Disclaimer: This website is a compilation of stories about Louis Bacon and Moore Capital Management that are posted in various sources around the internet. Links are provided to the full article's.

Louis Bacon backs hedge fund offering 16 percent loans

Promise of 8% Return Becomes Offer of 16% Loan for Ponzi Victims.

About 10,000 investors -- many of them retirees -- were swindled out of $1.2 billion they had sunk into a now-bankrupt real-estate developer that federal regulators say was a Ponzi scheme.

Some of the victims are of modest means for whom the losses represented a big blow. And so after the developer -- a Los Angeles-based firm called Woodbridge Group of Cos. -- blocked investors from selling their claims, the judge overseeing the case allowed them to borrow against what they stand to recoup after the assets are liquidated.

A couple of weeks ago, a little-known hedge fund by the name of Axar Capital Management was chosen to exclusively grant the loans after discussions with bigger rivals like Och-Ziff Capital Management and Apollo Global Management. The rate: 16 percent.

No one is accusing Axar, which is backed by billionaires Louis Moore Bacon and Julian Robertson, of wrongdoing.

Read the full story in Bloomberg here.

No comments:

Post a Comment

Note: only a member of this blog may post a comment.