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Sowood Makes Citadel Look Good

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Sowood Capital, blistered by big losses in its bond portfolio resulting from the current state of affairs in subprime mortgages and karma for Harvard being one of its biggest investors, voluntarily left the credit business today, after being asked to leave. The erstwhile multi-strategy fund, founded by Jeffrey Larson, sold its credit positions to Citadel, which now controls the “majority” of Sowood’s positions. Citadel manager Ken Griffin said in a statement this morning that his people “appreciate the professional manner in which the Sowood team has handled this complex transaction from start to finish.” Because when you’ve just completed the “transaction” of organ-harvesting, it’s nice to be gracious about it.
Sowood Unloads Credit Portfolio On Citadel [FINalternatives]