Hachiman Co-Founder Sues Former Partner Over Withdrawal, Loss

Apr 17 2013 | 11:50am ET

The co-founders of Hachiman Capital Management split two years ago and shuttered the Asia-focused hedge fund. But according to one of them, the story does not end there.

Toru Ueda last month sued Yashwant Bajaj in Singapore, alleging that his former partner violated their separation agreement. According to Ueda, who now works at HFC Advisory Group, he and Bajaj agreed that each would not withdraw more than their stakes in Hachiman, and that they would each be responsible for losses they incurred, rather than the firm itself.

Ueda says Bajaj violated both of those provisions, moving US$458,965 from Hachiman to his new hedge fund, Juggernaut Capital Management, without Ueda's consent, and failing to account for a trading loss of US$247,197.

Bajaj has not yet filed his formal defense, but wrote in court papers that Ueda's claims "are wholly without basis."

Ueda is seeking at least US$365,400 from Bajaj.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…