SageCrest Hit By Second Investor Lawsuit

Jun 26 2008 | 7:42am ET

Another investor is suing a Greenwich, Conn., hedge fund firm, accusing it of mismanaging its product to the benefit of its managers and to the detriment of its clients.

Westerly Capital filed suit earlier this month against Windmill Management and its operators, Alan and Philip Milton and Richard Weygand in Stamford Superior Court. Westerly said Windmill’s SageCrest hedge fund—which is liquidating—has not provided audited financial statements for several years. He also said the managers overvalued the fund's assets “in furtherance of a scheme and/or course of conduct designed to personally enrich themselves even if this proved detrimental to the fund and its investors.”

Westerly is seeking an accounting of the money lost in the hedge fund.

A lawyer for Windmill called the lawsuit “the worst abuse of our system” and “an attempt to shake people down.

Earlier this year, hedge fund Wood Creek Capital Management sued SageCrest, alleging it reneged on a redemption agreement. Wood Creek is seeking to take control over SageCrest.

RELATED STORIES

Wood Creek Seeks Control Over SageCrest


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.