Wednesday, 27 July 2016
Last updated 6 hours ago
Jul 27 2012 | 11:27am ET
A dispute among hedge fund managers turned deadly in South Africa yesterday.
Herman Pretorius allegedly shot and killed Basileus Capital CEO Julian Williams in Williams' Cape Town office last night. Pretorius then turned the gun on himself.
Williams and Pretorius were having a meeting, police said. The two men had sparred over an unlisted company, SA Superalloys. Williams served on the company's board, and Pretorius sold preference shares in the company. Pretorius was angered when SA Superalloys stopped paying dividends this year alleged that Williams may have funneled investors' money to Basileus, his private equity firm. Williams shot back that Pretorius was demanding dividends when Superalloys could not pay them to divert attention from his Relative Value Arbitrage Fund, an unlisted hedge fund.
Pretorius was due to meet investors north of Cape Town yesterday, but that meeting was cancelled due to the meeting with Williams, clients were told. It wasn't until today that investors received an unsigned e-mail from Pretorius' Abante Group telling them of the "sudden death of Herman Pretorius."
"We are currently assisting the police force with their investigation and will provide the necessary feedback to our investors as soon as possible."