Sunday, 5 July 2015
Last updated 2 days ago
Dec 23 2009 | 9:09am ET
A Canadian hedge fund has halted payouts after the court-appointed receiver for Ponzi schemer Bernard Madoff’s empire ordered a Madoff feeder fund to halt payments to investors.
Mackenzie Financial Corp. broke the bad news to investors in its only hedge fund recently. The firm’s Mackenzie Alternative Strategies Fund was managed by Tremont Partners, one of the largest Madoff feeder funds, and had about 20% of its assets invested with the US$65 billion fraudster.
“Tremont has now informed us that the Securities Investor Protection Act Trustee in the United States has requested a halt of payments from Tremont fund-of-funds with Madoff exposure pending completion of their review and analysis,” David Feather, executive vice president at Mackenzie, explained. He said there was “significant uncertainty” as to whether Mackenzie would see another dime from Tremont, and Mackenzie revalued the fund to show a 69% loss this year through the end of last month. The fund lost 59% last year.
The Mackenzie fund had just C$19 million in assets in January, when it began its liquidation. It’s now down to less than C$1 million, after returning C$9 million to investors earlier this year.
May 27 2015 | 2:15pm ET
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