Singapore Judge Signs Off On 3 Degrees Death Warrant

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.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of