Magnatar Capital

Magnatar Capital | Hedge Fund Notes

Below please find the Hedge Fund Tracker Tool for Magnatar Capital.

Resource #1: Magnetar Capital, LLC is a privately owned hedge fund sponsor. The firm invests in the public equity markets of the United States. The firm primarily invests in the companies involved in corporate mergers. It benchmarks the performance of its portfolios with the S&P 500. Magnetar Capital was founded in 2005 and is based in Evanston, Illinois with additional offices in New York, New York and San Francisco, California. source

Resource #2: Mr. Alec N. Litowitz is the Co-Founder and Chief Executive Officer at Magnetar Capital, LLC. He co-founded the firm in 2005. Prior to establishing Magnetar, Mr. Litowitz was the Head of Equities at Citadel Investment Group LLC. source

Resource #3: The Wall Street Journal published an article today about Magnetar Capital, a fund started by a star trader from Citadel Investment Group. Magnetar was a key player in the structuring of CDOs, or collateralized debt obligations. Magnetar acted as a "lynch-pin investor" in over $30 billion of these syndicated bundles of subprime mortgages and derivatives, according to the article.
In spite of the losses being racked up on Wall Street, the fund, with about $9 billion in assets, made about 25% returns last year. source

Resource #4: Magnetar Capital LLC, the $8 billion hedge-fund firm co-run by former Citadel Investment Group LLC trader Alec Litowitz, limited withdrawals from its biggest fund after it lost 30 percent this year through November, according to two people familiar with the fund.

The restrictions, known as gates, were triggered after clients sought to pull more than 15 percent of their money from the firm’s $4.8 billion multistrategy fund, said the people, who asked not to be identified because the information is private. source

Resource #5: Hedge funds, faced with mounting losses and investor redemptions, continue to halt further end-of-the-year withdrawals to avoid having to quickly sell their positions in a down market.

The latest firm to “raise the gates” is Magnetar Capital, the $8 billion firm run by former Citadel Investment Group trader Alec Litowitz. Two of Magnetar’s multi-strategy funds experienced year-end redemptions requests in excess of 15 percent of assets, according to a letter to investors sent on Dec. 18. The two funds combined had about $4.8 billion in assets as of Oct 31. source

Resource #6: The Journal describes Litowitz as an “astronomy buff” who named his hedge fund Magnetar, “a neutron star with a powerful magnetic field that was a remnant of a supernova”. Under Magnetar’s star power were CDOs* named after constellations – Aquarius, Scorpius, Sagittarius, Carina, and Orion. Several of these CDOs such as Carina, Cetus, Octans, and Orion have declared “events of default”, meaning they face liquidation. It’s no surprise to me that the Sagittarius CDO is involved in a legal dispute, as Sagittarius rules the law and legal issues. source

Resource #7: As part of its plan for further company growth, PokerTek (PTEK) announced today that it has completed a private placement of approximately $13 million of its common stock to institutional investors, including Magnetar Capital, Greenway Capital and a large mutual fund. The shares of common stock with related five-year warrants were sold at a price of $9.00 per share. After expenses and fees, PokerTek received net proceeds of approximately $12.5 million. Source

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