We told you this on Tuesday, but now the Financial Times is reporting that the assets under management by Vega may be down as low as $1 billion.
Steep trading losses at Vega Asset Management, an embattled hedge fund firm, may lead some investors to withdraw money, cutting its assets to as low as $1bn, from a peak of about $12bn.
Hedge fund industry insiders said a Vega bet on bond prices had sparked redemptions and inquiries about withdrawals from some fund of hedge fund investors. Ben Mann, a spokesman for Vega, said: "It is not the case that redemptions for this month are material or that they have added to trading losses." But Mr Mann said he expected redemptions, although it was "too early to speculate about these".
The investors' actions, coupled with Vega's losses as a result of a losing bet on the direction of Japanese, US and European bonds, which have rallied recently, have seen the fund's assets sink.
Vega facing withdrawals after steep losses [Financial Times]