Sowood Capital is a Boston-based

hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...

that lost 50% of its capital in the credit market turmoil of July 2007. Jeffrey Larson, the founder, worked for 12 years at the Harvard Management Company, the organization responsible for managing some of the business affairs of

Harvard University Harvard University is a Private university, private Ivy League research university in Cambridge, Massachusetts, United States. Founded in 1636 and named for its first benefactor, the History of the Puritans in North America, Puritan clergyma ...

. Harvard had seeded Larson with $500 million. Losses from the collapse were about $1.5 billion. Chicago-based hedge fund

Citadel LLC Citadel LLC (formerly known as Citadel Investment Group, LLC) is an American multinational hedge fund and financial services company. Founded in 1990 by Kenneth Griffin, it has more than $65 billion in assets under management . The company has ...

bought out Sowood's position and made huge profits as the markets recovered. One reporter wrote Sowood Capital "lost roughly half of its $3 billion in capital in less than a month, becoming the first high-profile victim (sic) of the credit market crisis".John McCrank (2021), Factbox: Biggest blowups among financial funds, ''Reuters'', 29 March.

References

Bibliography

* Strasburg, Jenny, Burton, Katherine (31 July 2007)
"Sowood Funds Lose More Than 50% as Debt Markets Fall (Update4)"
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Bloomberg Bloomberg may refer to: People * Daniel J. Bloomberg (1905–1984), audio engineer * Georgina Bloomberg (born 1983), professional equestrian * Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician a ...

''. Archived from th
original
on 16 March 2013. Retrieved 15 April 2022.
Citadel scoops up Sowood Capital
''

Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and also published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, the paper is owned by a Jap ...

''. (subscription required) Hedge fund firms in Boston {{finance-stub