That Ebullio Capital Management’s Commodity Master Fund would be liquidated is not a surprise: Most hedge funds that lose 96% in two months meet such a fate.
What is a surprise is that said fund is liquidating three-and-a-half years after those losses, and only because (a) it was still able to find counterparties with which to enter into contracts that it could breach or reach oral agreements to roll, depending on whose story you believe, and (b) because a Cayman Islands judge has ordered it be so.*
Unfortunately for the ECMF’s remaining (and, it must be said, very patient) investors, this means that their losses are about to be extended to 99.8% or so. Read more »