Rosen Wins $64M Arbitration Award Against Merrill Lynch

Jul 6 2011 | 5:11pm ET

Hedge fund Rosen Capital Management has won its arbitration case against Bank of America Merrill Lynch.

The Financial Industry Regulatory Authority ordered BofA to pay the Santa Monica, Calif.-based hedge fund $63.7 million. Rosen, which had sought more than $90 million, accused Merrill of fraud, negligence, breach of contract and acting in bad faith when it made "unexpected margin calls" against the hedge fund in 2008. The FINRA panel did not specify the transactions in its ruling.

Rosen said the margin calls caused losses for two of its hedge funds—reportedly in excess of 80% in just a week.

BofA, which acquired Merrill amidst the financial crisis that year, is mulling an appeal.

"At all times, we met the contractual requirements of our relationship with this sophisticated hedge fund, which sought to blame us for losses during a period of extreme market volatility in October 2008," spokesman Bill Halldin said.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of