Weavering in administration

Losses and Lawsuits

LONDON - Weavering Capital, a London-based hedge fund firm, has been placed into administration and is liquidating its largest fund, the Weavering Macro Fixed Income Fund.

PriceWaterhouseCoopers was called in a week ago to investigate a large interest rate swap position held by the $506 million fund, run by Magnus Peterson, as it had $637 million in swap agreements with another company controlled by Peterson thatlacked the value to support the swaps, according to a statement by PwC.

"This left the fund with no reasonable prospect of paying its debts and no option but to request that liquidators be appointed," said Matthew Wilde, partner and head of PwC's hedge fund restructuring team.

Founded by Peterson in 1998, Weavering Capital has $640 million under management but has redemption requests totalling half those assets. It has since emerged that it can only meet $90 million of those requests.

"It appears likely that there will be a very substantial shortfall to the fund's creditors, and its remaining investors may be left with little," Wilde said in the statement.