Court Rules Ex-Hedge Fund Manager Will Get His Bonus

Dec 30 2009 | 11:26am ET

A father-and-son team of former hedge fund owners have again been ordered to pay allegedly promised bonuses to a former hedge fund manager in their employ.

The Minnesota Court of Appeals sided with Paul Bottum, a former fund manager at defunct hedge fund Jundt Associates. Bottum sued the hedge fund and its owners, former Minnesota Vikings co-owner James Jundt and his son, Marcus, for failing to pay bonuses they guaranteed: $1 million for each year he beat the Standard & Poor’s 500 Index.

Bottum did so twice, but only received partial payment, he claimed.

After an earlier court defeat, the Jundts paid Bottum $1 million of the $1.8 million he demanded. Now, the appeals court has ordered the Jundts to cough up the remaining $825,000. The Jundts had argued that the statute of limitations had passed, as that money was from Bottum’s 2000 bonus.

The judge rejected Bottum’s claim for more than $125,000 in sanctions against the Jundts and JAI. But his lawyer did not sound especially disappointed.

“While we continue to believe the Jundts engaged in sanctionable conduct, we understand the court’s decision and hope this will be the last chapter in this matter,” Andrew Parker told the Minneapolis Star-Tribune.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.