Deep Basin Fund Returns Capital Citing ‘Dangerous’ Market
- Risk markets are “not functioning properly”: Matthew J. Smith
- Markets no longer tolerate essential short selling, Smith says
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Energy hedge fund Deep Basin Capital LP is returning capital to investors after retail traders drove market volatility to extreme levels, hitting some of the fund’s positions, according a letter to investors reviewed by Bloomberg News.
“I do not believe that risk markets are functioning properly and am deeply concerned about the immediate investment climate,” Matthew J. Smith, managing partner of the Stamford, Connecticut-based fund, wrote in the letter.