Sowood Capital

For the West Yorkshire village with the same name, see Sowood, West Yorkshire.

Sowood Capital is a Boston based hedge fund that lost 50% of its capital in the credit market turmoil of July 2007. Jeffrey Larson, the founder, worked for 12 years at the Harvard Management Company, the organization responsible for managing some of the business affairs of Harvard University. Harvard had seeded Larson with $350 million. Losses from the collapse were about $1.5 billion. Chicago-based hedge fund Citadel LLC bought out Sowood's position and made huge profits as the markets recovered.

References

Bloomberg.com
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Hedge funds

Investment
strategy

Arbitrage / Relative value	Capital structure arbitrage Convertible arbitrage Equity market neutral Fixed income arbitrage / Fixed-income relative-value investing Statistical arbitrage Volatility arbitrage

Event-driven	Activist shareholder Distressed securities Risk arbitrage Special situation

Directional	Convergence trade Commodity trading advisors / Managed futures account Dedicated short Global macro Long/short equity Trend following

Other	Fund of hedge funds / Multi-manager

Trading

Related
terms

Markets	Commodities Derivatives Equity Fixed income Foreign exchange Money markets Structured securities

Misc	Arbitrage pricing theory Assets under management Black–Scholes model (Greeks (finance): Delta neutral) Capital asset pricing model (Alpha / Beta / Security characteristic line) Fundamental analysis Hedge Securitization Short Taxation of private equity and hedge funds Technical analysis

Investors

Regulatory

Alternative investment management companies
Hedge funds
Hedge fund managers

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