Platinum Grove AM

Platinum Grove Asset Management LP | Notes

The following piece on Platinum Grove Asset Management, LP and Myron Sholes (pictured left) is being published as part of our Hedge Fund Tracker Tool, our daily effort to track hedge funds in the industry.

Resource #1: (11.8.08) Platinum Grove Asset Management LP, the hedge-fund firm co-founded by Nobel laureate Myron Scholes, temporarily stopped investor withdrawals from its biggest fund after it lost 29 percent in the first half of October.

The decline left Platinum Grove Contingent Master fund with a 38 percent loss this year through Oct. 15, according to investors. Funds employing a similar approach of exploiting differences in the value of related securities fell 14 percent last month and 30 percent this year, according to data compiled by Chicago-based Hedge Fund Research Inc.

``The suspension is necessary given current market conditions,'' Ryebrook, New York-based Platinum Grove said in an e-mailed statement today. ``Platinum Grove will use this period to consult with its investors and counterparties, determine their future intentions and manage the assets of the fund accordingly.''

Hedge funds are reeling from the worst financial crisis since the Great Depression, losing an average of 20 percent this year, according to Hedge Fund Research. A surge of investor redemptions forced firms such as Blue Mountain Capital Management LLC and Deephaven Capital Management LLC to freeze funds to stem the tide of withdrawals. Source


Resource #2: (11.9.08) I did some digging and found an interesting graph here showing the possible performance of this fund vs. the S & P 500 over the past 6 months. This is based on limited data but still interesting to view. A recent TickerSpy report shows the most recent holding disclosures for Platinum Grove Asset Management to be:

• (ANST)
• (CCU)
• (CMCSA)
• (CPN)
• (FMCN)
• (NVT)
• (NWS)
• (RCC)
• (SPSX)
• (TRCA)
• (TTWO)
• (VITA)
• (WAVE)
• (XL)
• (XMSR)

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