Ritchie Defends Itself, Reassures Investors

Jan 3 2008 | 8:14am ET

Under new assault in the courts, Ritchie Capital Management is assuring its clients that its business is not in danger.

In a Monday letter to its investors, the Lisle, Ill.-based hedge fund denied that it is on the verge of insolvency, Crain’s Chicago Business reports. And it further denied claims made by two other hedge funds against it, saying it has provided ample information about the sale of assets of a failed fund.

The move by Benchmark Plus Management and Sterling Asset Management to force the Ritchie Multi-Strategy Global fund into bankruptcy is, Ritchie wrote, “premised on a number of false allegations and may cause further damage to the value of your investment.”

As for the contested 2006 sale of the Multi-Strategy fund’s assets to Reservoir Capital Partners, Ritchie said it had done nothing wrong. “We have spent countless hours in meetings, telephone conversations and e-mails responding to investors’ questions,” the letter reads. “We provided extensive information to the investors committee and their counsel in the course of the 2006 restructuring and the Rhone Reservoir transaction.”

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