Monday, 25 July 2016
Last updated 2 days 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.