Is Magnetar Capital a hedge fund?

Magnetar Financial, LLC, also known as Magnetar Capital, is a hedge fund with more than $22 billion in assets under management (AUM) spanning across 83 funds, also called pooled investment vehicles.

Who owns Magnetar?

Alec Litowitz
Magnetar Capital

Type Limited liability company
Founder Alec Litowitz
Headquarters Evanston, Illinois
Key people Alec Litowitz (Founder and CEO) Ross Laser (Co-founder and President)
Services Investment management

What is the Magnetar trade?

According to bankers and others involved, the Magnetar Trade worked this way: The hedge fund bought the riskiest portion of a kind of securities known as collateralized debt obligations — CDOs. They say Magnetar pressed to include riskier assets in their CDOs that would make the investments more vulnerable to failure.

What is a hedge fund do?

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives.

Whats is a magnetar?

Magnetic magnetars A magnetar is an exotic type of neutron star, its defining feature that it has an ultra-powerful magnetic field. The field is about 1,000 times stronger than a normal neutron star and about a trillion times stronger than the Earth’s. Magnetars are, by far, the most magnetic stars in the universe.

What happens when a magnetar meets a black hole?

Although magnetars are incredibly powerful, they would lose the battle with a black hole. Once the black hole consumed the magnetar, its mass would increase and expand its event horizon. Thanks to this expansion, more and more stars would be flung into its dark density.

Do hedge funds ever lose money?

Hedge funds have always had a significant failure rate. Some strategies, such as managed futures and short-only funds, typically have higher probabilities of failure given the risky nature of their business operations.

Is a magnetar stronger than a black hole?

Although magnetars are incredibly powerful, they would lose the battle with a black hole. Depending on the trajectory of the magnetar, as well as the size and mass of both the magnetar and the black hole, the magnetic monster would be eaten up either whole, or slowly, piece by piece.

What color is a magnetar?

9-0846, a rare ultra-magnetic neutron star called a magnetar. The glow arises from a cloud of fast-moving particles produced by the neutron star and corralled around it. Color indicates X-ray energies, with 2,000-3,000 electron volts (eV) in red, 3,000-4,500 eV in green, and 5,000 to 10,000 eV in blue.

What causes a magnetar?

Description. Like other neutron stars, magnetars are around 20 kilometres (12 mi) in diameter and have a mass about 1.4 solar masses. They are formed by the collapse of a star with a mass 10–25 times that of the Sun.