Sowood Capital is a Boston based

hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as sho ...

that lost 50% of its capital in the credit market turmoil of July 2007. Jeffrey Larson, the founder, worked for 12 years at the

Harvard Management Company The Harvard University endowment (valued at $53.2 billion ) is the largest academic endowment in the world. Its value increased by over 10 billion dollars in fiscal year 2021, ending in the largest sum in its history. Along with Harvard's pension ...

, the organization responsible for managing some of the business affairs of

Harvard University Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of higher le ...

. Harvard had seeded Larson with $500 million. Losses from the collapse were about $1.5 billion. Chicago-based hedge fund Citadel LLC bought out Sowood's position and made huge profits as the markets recovered. Sowood Capital is considered to be "the first high-profile victim of the credit market crisis".John McCrank (2021), Factbox: Biggest blowups among financial funds, ''Reuters'', 29 March.

References

Bibliography

* Strasburg, Jenny, Burton, Katherine (31 July 2007)
"Sowood Funds Lose More Than 50% as Debt Markets Fall (Update4)"
'' Bloomberg''. Archived from th
original
on 16 March 2013. Retrieved 15 April 2022.
Citadel scoops up Sowood Capital
''

Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...

''. (subscription required) Hedge fund firms in Boston {{finance-stub