Macquarie warns Fortress fund faces 25 percent losses - International Herald Tribune: "SYDNEY, Australia: Investors in Macquarie Bank Ltd.'s high-yield fund Fortress Investments Ltd. face losses of up to 25 percent because of volatility in global credit markets.
The average price of assets in the fund's portfolios fell 4 percent in June and maybe another 20 to 25 percent in July, director of Macquarie Fortress Investments, Peter Lucas, said late Tuesday in a statement.
Fortress is the third fund manager in Australia to flag serious problems and the latest sign that the fallout from the U.S. subprime mortgage sector is spreading wider. Australia has the largest hedge fund industry in Asia, according to the government, and Australian hedge funds have been some of the first to say that the global widening in yield spreads has cut deep into their value.
Fund watchers say that as niche funds heavily exposed to U.S. credit markets assess their value at the end of July, more may report significant falls in value."
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