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

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel Supports Manhattan Real Estate With Record Deal

Sep 16 2015 | 3:04pm ET

Never count hedge funds out of a big property deal. The Manhattan real estate market...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note

Upcoming Events