abstract:Magnetar Capital is a hedge fund based in Evanston, Illinois. Among its many activities, the firm was actively involved in the collateralized debt obligation (CDO) market during the 2006–2007 period.
But MagnetarCapital, an Evanston, Illinois hedge fund that held equity in the deal, disputed that fact and insisted it should continue to get paid even if Orion had defaulted.
MagnetarCapital LLC, another hedge-fund firm that, like Paulson, was heavily invested in collateralized debt obligations in 2007 also has been working to reassure investors that it believes its mortgage-linked investment strategy was sound and can withstand regulatory scrutiny.