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Synapse Shutters Fund Because of Problems Both Unrelated But Also Related To Subprime

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Synapse Investment Management kicked the week of right by closing Synapse High Grade ABS, one of its three fixed-income funds. Though it emphasized that SHG ABS had “no [direct] exposure’’ whatsoever to subprime, its main investor, Landesbank Sachsen Girozentrale, did have some issues with suboptimal mortgages, and spread the misery around by yanking its investment and forcing Synapse’s hand. (The German bank was recently bailed out by several of its state-owned bank friends for €17.3 billion (US$23.6 billion)).
Synapse blamed “severe illiquidity in the market” for the closure of the fund, which had only been operating since April. Rob Ford, who managed the firm’s asset-backed securities, noted “disappoint[ment]” around the water cooler. Co-founder Mark Holman focused more on vindictiveness, which is great for make money, telling Bloomberg: “There are enormous opportunities in the ABS market caused by this enormous deleveraging and we intend to return with a fund that can exploit them.” Lead the way.

Synapse Shuts Fund Because of Market `Illiquidity'


Zoe Cruz To Shutter Hedge Fund

Don't cry for the Cruz-Missile, though. Apparently she's already strategizing her next move. Cruz is said to have been struggling to raise anything beyond the initial $200 million she obtained from Voras Capital investors, the source said. The source said the decision to return investor money was made recently and all clients would get their money "promptly." Cruz's hedge fund, which began raising money and recruiting employees in 2009 formally opened in 2010, was down 8 percent last year, the sources added...The source said Cruz is fielding job inquiries in the finance industry, but has not made any decisions. Zoe Cruz's Voras Capital To Close [Reuters/Katya Wachtel]