Tuesday, 22 July 2014
Last updated 7 hours ago
Feb 24 2012 | 8:45am ET
Hedge fund 3 Degrees Asset Management may be on borrowed time.
The Singapore-based firm lost its appeal of an order to close. The hedge fund was found to have improperly channeled money into a company controlled by founder Mohamed Ibrahim.
The Monetary Authority of Singapore ordered 3 Degrees to cease operations by Nov. 9 of last year. But the hedge fund asked the Singapore High Court to overturn MAS's decision to revoke its exempt fund manager status.
Justice Belinda Ang declined to do so following a closed hearing on Feb. 23, Bloomberg News reports. MAS had argued that shuttering 3 Degrees would send a "strong message of deterrence."
3 Degrees said it had done nothing "illegal or improper" in structuring the loan from one of its funds. MAS began its investigation after 3 Degrees sued Agus Anwar to recover at least US$40 million in debt. Anwar then accused Ibrahim of diverting US$6.7 million to 3 Degrees. What's more, 3 Degrees' former lawyer, who has been sued by the hedge fund, told MAS that the two loans in question were connected and that Ibrahim wanted no paper trail for them.
3 Degrees has about US$215 million in assets under management. It stopped accepting new investors after MAS sought to pull its registration.
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…