Investor Lawsuit Against Listed Hedge Fund Tossed

Feb 16 2012 | 2:48am ET

A federal judge has junked a lawsuit against Polygon Investment Partners and a subsidiary because the shareholder bringing the case bought the fund long after the alleged malfeasance occurred.

U.S. District Judge Jed Rakoff dismissed the lawsuit, filed last year, ruling that Daniel Silverstein failed to meet the basic pleading requirements for the case. Silverstein bought shares of listed hedge fund Tetragon Financial Group in 2010, but accused Tetragon Financial Management and parent Polygon of writing down its net asset value in 2008 to a number below fair market value, allowing the firm to collect larger fees when the credit markets improved.

"Even if some conduct that was the basis of the complaint continued to occur after the plaintiff bought his stock, it is clear that he did not own stock throughout the course of activities that constitute the primary basis of the complaint."

Silverstein's lawsuit, which also named Polygon founders Reade Griffith and Patrick Dear, accused Tetragon of collecting almost $205 million in "unjust fees." Tetragon has denied any wrongdoing.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note