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Hedge Funds Say They Lost $95 Million in LME Nickel Crisis
- AQR, DRW and others want answers on decision-making in March
- LME said the request is a misconceived fishing exercise
The London Metal Exchange
Photographer: Chris J. Ratcliffe/BloombergThis article is for subscribers only.
A group of hedge funds led by AQR Capital Management LLC said that they lost a combined $95 million during a turbulent few days when the London Metal Exchange controversially canceled billions of dollars in nickel trades and suspended the market.
The group of funds on Friday applied to force LME to hand over information relating to two key phone calls on March 8, the day that the trades were canceled. AQR Chief Investment Officer Clifford Asness has been among the most vocal critics of the LME’s actions during the crisis, describing the events as “one of the worst things I’ve ever seen.”