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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note