Nomura and Credit Suisse warn of losses amid hedge fund fire sale

Firms suffer shockwaves from Friday sell-off

Mike Sheen
Credit Suisse and Nomura suffered share price falls of 13.2% and 16.3% respectively

Credit Suisse and Nomura suffered share price falls of 13.2% and 16.3% respectively

Nomura and Credit Suisse have warned investors that they may be subject to "significant" losses as a result of a margin call default suffered by a US-based hedge fund last week.

The banks said in separate market updates on Monday (29 March) that the cost of unwinding positions is set to have a material impact on their respective upcoming quarterly results. A case of caveat emptor? Managers approach with caution as SPAC surge welcomed to UK market It follows a wave of selling pressure on Friday (26 March) after ex-Tiger Management analyst Bill Hwang's family office was forced to liquidate positions, with US media stocks and some Chinese shares taking the heaviest hit. Nomura told investors this morning that "an event occurred that could subject one ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Markets

Dan Green, portfolio manager at Martin Currie

Three sectors that will benefit from the digital economy

E-commerce, the auction industry and cybersecurity

Dan Green
clock 12 August 2022 • 3 min read
Mike Preston, partner at Cleary Gottlieb

Private equity in sport: A growing opportunity

Expected to grow to $500bn

Mike Preston
clock 11 August 2022 • 4 min read
Markus Hansen has been a portfolio manager for Vontobel's Quality Growth Boutique since June 2020.

Vontobel's Hansen drops Adidas for Hermès as a European recession looms

Shopping after growth derating

clock 10 August 2022 • 2 min read