Sunday, 25 January 2015
Last updated 1 day ago
Dec 4 2013 | 12:34pm ET
Hedge funds could be on the hook for $13 million owed them or their clients by AlphaMetrix Group.
The Commodity Futures Trading Commission monitor overseeing the hedge-fund services firm said that hedge funds and commodity trading advisers are owed between $7 million and $10 million in fees by AlphaMetrix. In addition, their investor clients are owed $3 million in rebates.
Last month, the CFTC accused AlphaMetrix of misappropriating $2.8 million in fee rebates. The allegation came after AlphaMetrix warned clients in October that it had "encountered significant cash-flow issues," followed by a decision to begin closing investment pools.
Still, the monitor, Deborah Thorne, said she believes 95% of investor funds should be returned by Dec. 20, although that does not include the rebates. She warned that AlphaMetrix has "spent most or all" of that $13 million.
Thorne added "that additional investigation into the activities of current and former management should be conducted to determine whether there are causes of action to be pursued to bring in additional funds to compensate the losses of the rebate claims and possibly the claims of the CTAs."
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…