Cheyne Capital in trouble

Cheyne Capital, the independent hedge fund manager, is the latest UK firm to hit problems following the problems in the credit markets.

The group’s Cheyne Finance fund will be liquidated after the recent sell-off reduced the value of some holdings. The fund was recently said to contain £3.3 billion of assets.

The scale of the losses at Cheyne Finance has not been divulged but a gradual orderly sale of assets is underway according to a letter to clients.

Cheyne was established in 1999 by former Morgan Stanley investment bankers Jonathan Lourie and Stuart Fiertz. It launched its first fund in June 2000. Currently, Cheyne is one of the largest hedge fund management groups in Europe with substantial mandates from pension funds, foundations, family offices and funds-of-funds.

Stuart Fiertz is rumoured to be worth £94 million and the firm’s 150 employees shared a bonus pot of £75 million in 2006.

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