Maverick Says It Is Not Under Investigation After Wyly Charges

Aug 2 2010 | 6:24am ET

While Maverick Capital Management co-founder Samuel Wyly has been accused of a $550 million fraud by the Securities and Exchange Commission, the hedge fund is not under investigation, it told investors.

Dallas-based Maverick moved quickly to quell investor concerns after Wyly and his brother, Charles, were hit with the charges, which accuse them of hiding assets and insider trading. But while the SEC alleges that the Wylys diverted some of their ill-gotten gains to Maverick and another hedge fund founded by Samuel Wyly, Ranger Capital, Maverick is not a subject of the probe, Reuters reports.

The Wylys have denied any wrongdoing and pledged to fight the SEC lawsuit, which was filed on Thursday.

Samuel Wyly left Maverick 15 years ago to found Ranger Capital, leaving the $11 billion hedge fund in the hands of co-founded Lee Ainslie. Both brothers continues to invest with the hedge fund, although their investment with the firm is not said to be significant to Maverick.

Samuel Wyly’s son, Evan, another co-founder of the fund, continues to own a stake in Maverick but has no day-to-day role at the hedge fund.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...