Sowood Capital

Sowood Capital is a Boston-based hedge fund that lost 50% of its capital in the credit market turmoil of July 2007. Jeffrey Larson, the founder, worked for 12 years at the Harvard [Management Company], the organization responsible for managing some of the business affairs of Harvard University. Harvard had seeded Larson with $500 million. Losses from the collapse were about $1.5 billion. Chicago-based hedge fund Citadel LLC bought out Sowood's position and made huge profits as the markets recovered.
One reporter wrote Sowood Capital "lost roughly half of its $3 billion in capital in less than a month, becoming the first high-profile victim of the credit market crisis".