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Hedge fund Tyrus Capital reinvents itself in wake of failed M&A bet

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Event-driven hedge fund Tyrus Capital is being reinvented as a broad asset management company by founder Tony Chedraoui four years after the firm nearly went bust following the failure of a big M&A bet, according to a report by Bloomberg.

The amount of money Chedraoui’s core strategy can take in has been halved to $1 billion with the focus switching from deal wagers to acquiring private equity portfolios from investors wanting an early exit.

The firm is also building a real estate credit business and underwriting fundraising for struggling companies. 

The wager that almost derailed the firm four years ago saw Chedraoui bet about a third of the firm’s capital – over half a billion dollars – on NXP Semiconductors NV, whose take-over deal with Qualcomm Inc collapsed ion 2018 when Chinese competition authorities refused to sign off on the deal in the midst of US President Donald Trump’s trade war. Tyrus Capital chalked up a record 14% loss as a result.

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