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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR