Another Pension Has PAAMCo Questions

Nov 3 2010 | 2:54am ET

The hits keep coming for Pacific Alternative Asset Management.

The fund of hedge funds, which is under investigation for potentially misleading investors and others about its woman-owned status, has already lost one mandate as a result of the probe and had itself put on watch by another public pension fund. Now, from across the pond, yet another pension fund might be getting cold feet.

Liverpool's Merseyside Pension Fund has postponed PAAMCo's hire, just four months after approving it for a £25 million mandate, Pensions & Investments reports.

The PAAMCo hire is subject to further due diligence currently being undertaken by the pension. Merseyside's staff are looking into the very same ownership question at the heart of a recent court case and the SEC probe.

In August, a judge award Paloma Partners' S. Donald Sussman a 40% stake in PAAMCo's parent company. Sussman had backed the firm and received PAAMCO convertible bonds for his troubles, an arrangement that U.S. District Judge Richard Sullivan said "may have been designed to mislead."

PAAMCo's Stephen Oxley told P&I that the Merseyside issue had nothing to do with the SEC probe or the Sussman case.

"The further due diligence being conducted by Merseyside has been scheduled for some time and is not directly connected with recent developments," he said.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of