Despite Promise, Hedge Fund Grifphon Misses Payment

Feb 7 2011 | 8:54am ET

An Oregon hedge fund facing a fraud investigation continues to do little to endear itself to investors.

Grifphon Asset Management has missed another deadline to repay investors, the Portland Business Journal reports. The firm, which has promised to liquidate its funds to fill redemption requests, had told investors that it would collect the proceeds on Jan. 31, but the money did not arrive.

Grifphon would not say what had gone wrong, but told the PBJ, "while Grifphon continues to work towards the liquidation of all its partners, we are unable to begin distributing funds at this time."

"They continue, believe it or not, to make the same promises," one lawyer, who represents a couple that has been seeking its money for more than a year, said.

The Oregon Division of Finance and Corporate Securities last year launched a probe of Grifphon amidst complaints from investors about their inability to withdraw funds. In December, Grifphon founder Yusaf Jawed explained that the firm had been unable to obtain a necessary bridge loan.

Also last month, Grifphon settled a lawsuit—stemming from an unfilled redemption request—filed by an angry investor.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR