Sunday, 21 December 2014
Last updated 1 day ago
Dec 1 2010 | 12:20pm ET
Hedge fund Peak Ridge Capital Group is returning fire in its fight with Morgan Stanley, filing a lawsuit that claims the investment bank "grossly mishandled" its trades.
The countersuit responds to a lawsuit filed last month in which Morgan Stanley accused Peak Ridge of missing margin calls and of taking "extreme risk," leaving the bank with $40.6 million in losses.
Bermuda-based Peak Ridge responded that Morgan Stanley took those losses after "wrongfully" seizing the natural gas portfolio and turning it over to an "inexperienced" trader on its proprietary trading desk. Peak Ridge estimates the losses at $32 million.
The hedge fund also accused Morgan Stanley of "arbitrarily and capriciously" imposing new margin requirements as the value of its portfolio dropped.
A Morgan Stanley spokesman said the firm stands behind its original lawsuit.
Peak Ridge is perhaps best known for briefly employing Brian Hunter, the natural gas trader whose bets destroyed Amaranth Advisors. During his stint at Peak Ridge, Hunter managed money for the fund in question in the Morgan Stanley lawsuits, which managed triple-digit returns in 2008, its first year. But Hunter left the firm after only a few months that year.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.