Copper Arch Hedge Fund Liquidation Could Cause Stock Volatility

Various news sources are reporting that $1 billion hedge fund Copper Arch has notified investors that it will liquidate its holdings and return funds to investors on December 31st. While the fund is reportedly not under any financial stress, news of hedge fund liquidations cause some investors to shoot first and ask questions later. Often some investors will try to find out what a particular fund owns and then short those holdings knowing there is going to be a forced seller.

The list below highlights Copper Arch's positions as of 9/30/07, sorted by the percentage of each company the fund owns. If you follow any of these stocks, and notice any unusual volatility, reports of the fund winding down operations may be the cause.