Sunday, 21 September 2014
Last updated 1 day 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 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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.