Withering On The Vine: Ivy Shut Down Amidst Probe

Apr 1 2010 | 10:39am ET

The Bank of New York Mellon is closing the book on Ivy Asset Management, which is under investigation over investor losses in the Bernard Madoff scandal.

Most of Ivy’s employees have been laid off. BNY Mellon Asset Management is reportedly encouraging Ivy clients to move their money to one of the firm’s other two fund of hedge funds units, EACM Advisors and Mellon Global Alternative Investments.

News of Ivy’s closure comes amidst word that New York is probing the firm’s relationship with the Ponzi schemer Madoff. Ivy clients lost more than $100 million in Madoff’s scam.

New York Attorney General Andrew Cuomo has been looking into whether Ivy did not warn its investors about its concerns about Madoff’s operation, The Wall Street Journal reports. Among the Ivy clients victimized by the $65 billion fraud were several upstate New York pension funds.

Ivy’s closure was first reported by Pensions & Investments.

In January, Sean Simon, Ivy’s CEO and the son of the firm’s founder, left BNY Mellon amidst a restructuring of its fund of funds units. The firm, which BNY Mellon bought 10 years ago, had seen its assets drop from $15 billion in 2006 to just $2.5 billion today. Most of that money is managed on behalf of just a handful of large institutional investors.

At the time, BNY Mellon said the firm would conduct a “strategic review” of Ivy. Yesterday, they said that review was still ongoing.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...