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Genta Incorporated Message Board

  • be_careful_outdere be_careful_outdere May 2, 2002 6:25 AM Flag

    False rumors

    From "RealMoneyPro" yesterday:

    Kashing Out?
    05/01/02 01:55 PM EDT

    Rumors of big hedge fund redemptions make the rounds of trading desks during any extended market swoon, and the current dip is no exception.

    The one with the most legs concerns a $600 million fund run by Peter Kash's Paramount Asset Management called Aries. Several traders we talked to mentioned the fund, which specializes in biotech, certainly a beat-up sector of late.

    A spokesman for Paramount said the rumors are absolutely false, and that Paramount is, in fact, hiring. But traders note that biotech company Genta (GNTA:Nasdaq), by far Paramount's biggest holding, has fallen 30% since the beginning of April. Its other three top holdings have lost more than 30% since the beginning of the year.

    Another biotech fund manager, Merlin Biomed Group, managed by Stuart Weisbrod, is the focus of similar speculation. Barron's listed three of the group's funds among the worst performing hedge funds for the first quarter, each down 20% or more.

    A spokesperson from Merlin Biomed, which has $500 million under management, said the company is not going out of business and is not liquidating any of its funds.

    By Kristen French, TSC Staff

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