Monday, 20 October 2014
Last updated 2 days ago
Mar 31 2011 | 2:30am ET
A professional poker player—and Goldman Sachs veteran—has sued a hedge fund that was burned in the Arthur Nadel Ponzi scheme.
Robert Varkonyi and his wife, Olga, say that ThinkStrategy Capital Management improperly divvied up the assets of its share classes when the fund collapsed in the wake of the Nadel scandal. According to the Varkonyis, ThinkStrategy and founder Chetan Kapur swapped some Class B—the unlevered share class the Varkonyis put $1.4 million with—assets with some Class A units “with the intent of harming the Class B limited partners and benefitting KBC Financial,” which provided the leverage for the Class A shares.
After the alleged asset swap, Class B shares were left with just $4.47 million, while Class A shares had $6.5 million and KBC Financial got its $17 million back. “The assets of Class B were rendered valueless in the Ponzi scheme perpetrated by Arthur Nadel.”
The Varkonyis want their full investment back, Forbes magazine reports.
KBC told Forbes that it is “confident in this case that the bank has done nothing wrong.”
The lawsuit, filed earlier this month, is not the first against ThinkStrategy. Last year, another investor alleged that Kapur failed to perform the due diligence he promised.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
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 ...