Friday, 22 August 2014
Last updated 2 hours ago
Jan 2 2008 | 12:25pm ET
It’s hedge fund vs. hedge fund in the latest court battle for troubled Ritchie Capital Management. A pair of hedge funds run by Benchmark Plus Management, along with Sterling Asset Management’s Low Volatility Fund, have sued Ritchie over a failed fund in which all three invested, claiming they are owed a total of $46 million.
The suit, filed in federal court in Chicago, seeks to force the Ritchie Multi-Strategy Global fund into Chapter 11 bankruptcy protection. According to the aggrieved hedge funds, Ritchie has refused to cooperate with their investigation of possible breach of contract, and they fear the firm is using its position as controlling party to “the likely wrongful detriment of the funds’ investors.”
Ritchie’s “management activities have been conducted in complete secrecy,” the petition, filed last week, complains. “The secrecy must now end.” Benchmark Plus and Sterling are asking the court to order Ritchie to provide them the material they seek.
Lisle, Ill.-based Ritchie called the filing “unjustified and without merit.”
Faced with huge redemption requests, the firm halted withdrawals and began liquidation proceedings for the Multi-Strategy fund more than a year ago. It then sold the fund’s portfolio and another fund to Reservoir Capital Partners for $1 billion.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note