GF Securities Says One of Its Hedge Funds Lost $139 Million By Bloomberg

© Reuters. GF Securities Says One of Its Hedge Funds Lost $139 Million

(Bloomberg) — GF Securities Co. said one of its hedge funds wiped out an amount equivalent to more than 10 percent of its profit for all of 2017 after suffering “significant losses due to fluctuations in the foreign exchange market.”

The GTEC Pandion Multi-Strategy Fund SP lost $139 million in 2018 and its net value was negative $44 million at the end of December, according to a Hong Kong exchange filing Wednesday. The loss reduced GF Securities’ net income by 919 million yuan ($137 million) — equal to more than 10 percent of the brokerage’s profit the year prior, the statement said.

The debacle has impacted Citigroup Inc (NYSE:)., which faces losses of as much as $180 million on loans made to a hedge fund managed by a unit of GF Holdings (Hong Kong) Corp., a person briefed on the matter said in December. That’s prompted board-level discussions and a business shakeup at the New York-based bank.

READ MORE: Citigroup Said to Face $180 Million Loss on Asia Fund Loan

The Pandion Fund, established in 2016, invested mainly in on-market equity derivatives, and has gradually expanded to buy interest-rate products, foreign-exchange derivatives and foreign-exchange volatility variance swaps. GF’s Hong Kong units may face potential litigation, according to Wednesday’s statement.

The China Securities Regulatory Commission’s Guangdong bureau has requested GF Securities enhance its internal controls, strengthen its investment in information systems and personnel, and improve risk management of overseas units, according to a separate filing Wednesday.

To contact Bloomberg News staff for this story: Jun Luo in Shanghai at;Bei Hu in Hong Kong at

To contact the editors responsible for this story: Sam Mamudi at, Katrina Nicholas, Paul Panckhurst

©2019 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *