Hedge Fund Grifphon, Under Probe, Settles Investor Lawsuit

Dec 16 2010 | 1:11am ET

An Oregon hedge fund facing a state fraud investigation has dealt with another legal headache.

Grifphon Asset Management founder Yusaf Jawed has settled a lawsuit filed by a pair of aggrieved investors who accused the hedge fund of failing to fill a redemption request. The deal comes just days before the lawsuit, which sought about $300,000, was to go to trial.

It is unclear how much Jawed settled for, but his lawyer told the Portland Business Journal that the investors, Edward and Linda Gilbert, "got their redemption amount." Neither Jawed nor Grifphon admitted any wrongdoing.

The Oregon Division of Finance and Corporate Securities is probing Grifphon and another Portland-area hedge fund, Sasquatch, which was founded by a former Jawed business partner. The investigation was sparked by complaints from several investors alleging they have been unable to withdraw their money.

Jawed has acknowledged that Grifphon has suffered from liquidity problems after the hedge fund failed to get a needed bridge loan. Robert Custis, the Grifphon lawyer, also told the PBJ that the firm has agreed to sell all of the holdings of all four of its funds, with plans to restructure to ensure better liquidity in the future.

"What Grifphon learned is that liquidity is of high importance to most people," Custis added.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.