Weavering Liquidator Sues Administrator

Jan 7 2013 | 11:02am ET

The liquidator of Weavering Capital, whose founder faces fraud charges, has sued the collapsed hedge fund's Irish administrator for as much as €500 million.

Grant Thornton alleges that BNY Mellon Investment Servicing International improperly calculated Weavering's assets under management. The hedge fund claimed to have assets worth more than US$530 million, when it allegedly owned just a single US$637 million swap agreement with a company controlled by the hedge fund itself.

"We believe the issues being heard in this case are of vital importance in establishing the responsibilities of companies offering hedge fund administration services, and ensuring Irish law appropriately protects investors in hedge funds administered in this jurisdiction," a Grant Thornton spokesman said.

Weavering's auditors, Ernst & Young, have also been sued.

BNY Mellon itself never provided services to Weavering, which collapsed in 2009. But it bought Weavering's administrator, PNC Global Investment Servicing, the following year.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note