Friday, 22 May 2015
Last updated 4 hours ago
Oct 31 2011 | 9:46am ET
The liquidators of collapsed hedge fund Weavering Capital blasted the firm's founder as part of its effort to recover money for the hedge fund's investors.
Magnus Peterson and other Weavering employees "cynically manipulated" the fund's performance almost from day one "to pretend that the Macro fund had made a profit," Robert Anderson, a lawyer for the liquidators, said Friday. Anderson also accused Peterson of using swaps with a Weavering-controlled entity that he claims investors knew nothing about to hide losses.
"It is only because you had the ability, in the comfort of your home, just before midnight, three days after trading for the month finished, to put on these two trades which you knew had a guaranteed profit," Anderson said to Peterson, who is representing himself in the High Court case, which began earlier this month. Anderson was referring to a Sept. 1, 2003, trade which he claims allowed Weavering to turn a 19% August loss into a 3% profit.
Weavering collapsed in 2009 after an investigation found that more than 100% of its Macro fund's net assets were tied up in swaps with another Weavering entity. British regulators dropped their probe of Weavering last month, but a Cayman Islands court in August slapped Peterson's younger brother and stepfather, both directors of the Weavering fund, with US$111 million in fines for fraud.
Peterson denied that he used the swaps to hide losses, saying that he and his fellow managers were "finding our feet" during Weavering's early days.
"We didn't have all the routines in place," he said. "It was probably after exchange hours and Friday [and] we wanted to hedge the position."
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…