Hedge Funds Seek Bankruptcy For Ritchie Fund

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.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.