Judge Names Fletcher Bankruptcy Trustee

Oct 9 2012 | 10:56am ET

A bankrupt Fletcher Asset Management hedge fund has a new boss.

U.S. Bankruptcy Judge Robert Gerber has named Richard Davis trustee of the Fletcher International Fund. Davis' appointment is a defeat for New York-based Fletcher and its founder, Alphonse Fletcher, who opposed a trustee. The trustee was sought by three Louisiana public pension funds that invested $100 million in the fund.

Davis, a former partner at law firm Weil Gotshal & Manges, told the New York Post that his "function will be to review the assets, review the valuations and conduct investigations." And, he added, "we absolutely are going to investigate whether or not there has been fraud."

Fletcher put the International fund into bankruptcy in June to prevent a Cayman Islands-appointed liquidator from selling its assets. A Caymans court has found that the fund's assets are worthless, while Fletcher contends that at least one asset, United Community Banks, is worth $136 million—enough to pay back the pension funds.

The pensions, which are behind the liquidation effort in the Caymans, have been battling Fletcher for more than a year, after the hedge fund filled their July 2011 redemption request with promissory notes.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR