PointState Capital, founded by Zachary Schreiber and other alumni of billionaire investor Stanley Druckenmiller’s Duquesne Capital Management, has been hit with approximately $1 Bio in redemptions. The New York hedge fund is on the verge of a second losing year in a row.
PointState Capital had big investments on satellite operators Intelsat, Fannie Mae and Freddie Mac which resulted in heavy losses for the firm. This is a big blow to one of the biggest hedge fund startups in the industry. Following news of Louis Bacon retreat to a family office and Stone Milliner winding down, signs are showing that more and more traders are struggling in today’s market.
According to the Financial News, stock price of Intelsat is down nearly 75% this month following a failure to secure federal backing for a private auction of some of the wireless spectrum it controls.
A person familiar with PointState said the fund was short the company’s bonds, a bet prices would decline, partially offsetting its Intelsat losses.
Fannie Mae and Freddie Mac shares were sent down due to the federal regulator requiring them to have heightened capital levels to return them to private ownership.
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