August 15, 2007 (LPAC)--The list of troubled if not bankrupt hedge funds is growing. Australia's Basis Capital Fund Management Ltd. told investors that one of its hedge funds may have lost 80% of its value because of the subprime crisis. Only a month ago it said the loses were 50%.

The world largest hedge fund namanger, the London based Man Group, announced that its flagship AHL diversified Futures fund fell for the third week, off 2.06% yesterday and 9% for the last three weeks. AHL has been Man's biggest profit maker. Man's own shares have lost 31% of their value in the past month.

The very large Greenwich, Connecticut-based AQR group of funds, managing $10 billion in assets at the start of 2007, acknowledged losses of 20% on Aug. 14, and is attempting a $1 billion "recapitalization" a la Goldman Sachs and Bear Stearns' earlier failed efforts.

Desperate to keep and to gain new investors in their Global Equity Opportunities hedge fund, Goldman Sachs waved the management fee, an important source of the bank's revenues, for new investors. It was announced last week that this fund lost 28% of its value, forcing Goldman Sachs to dump $2 billion of its own money into it and getting AIG's Hank Greenberg and billionaire Eli Broad to dump another billion dollars.

Another London-based hedge fund manager, Mulvaney Capital Management Global Diversified Program, which has $169m under management, lost 16.89% this month.

Also in London, Northern Rock, the British based mortgage lender's share price continued to collapse. It raises credit for mortgage lending through the wholesale capital markets which have now frozen up. The share price fell 12% in June and another 13% since then.

Iceland's Kaupthing bank bought the Netherlands, NIBC Holding for three billion Euros. This is after NIBC announced huge losses on its subprime asset backed securities. The sale went through after J.C. Flowers & Co. bought NIBC's subprime backed ABS. Why Flowers bought this worthless subprime portfolio remains to be answered.