London hedge fund to close as losses mount

Another fund which the firm manages is also reportedly facing problems according to a letter sent out to investors. The fund, known as ABS Master Fund, did not invest in sub-prime mortgages, instead preferring to invest in prime opportunities in the US. However, the fallout of the sub-prime crisis has cause major problems across the US housing market, resulting in a decline in the value of prime assets. Peloton Partners was founded by Ron Beller and Geoff Grant, who were both former partners at Goldman Sachs. If you would like to comment on this story, contact: John Bakie Tel: 020 7484...