Click on a label to read posts from that part of the world.
New Mexican town created by hedge fund causes layoffs?!
DE Shaw and real estate developer SunCal Cos carved out 55,000 acres (twice the size of Boston, according to Business Insider) and sought to turn it into a new town. The financial crisis pretty much put a stop to the $250 million endeavor, but when the music stopped, the payments didn't. Now it looks like DE Shaw has a $150 million tab.
The question that remains, according to Business Insider's Courtney Comstock, is pretty simple:
DE Shaw is a quant fund that trades - we thought - exclusively computer-driven strategies. So what the heck were they doing trying to create a residential, industrial, and commercial community out in New Mexico?
Hopefully, nobody printed updated maps!
[photo by leiris202 via Flickr]