Thursday, 21 August 2014
Last updated 10 hours ago
Jan 14 2008 | 4:32pm ET
The saga of collapsed hedge fund Wood River Capital Management, in which investors lost as much $88 million, is finally over. Two months after founder John Whittier was sentenced to three years in prison defrauding investors and regulators, the investment that ruined the firm has finally been unwound.
Endwave Corp., acting on behalf of Wood River’s investors, liquidated the hedge fund’s 4.1 million share stake in itself, buying more than half of the shares itself. The stake, once worth as much as $220 million, was sold for just $28 million.
Whittier, without investor knowledge or approval, invested the lion’s share of Wood River’s assets in Endwave, a San Jose, Calif.-based radio equipment, taking a big stake in the company. He also failed to inform the Securities and Exchange Commission when the hedge fund’s stake exceeded 5%.
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…