Tuesday, 16 September 2014
Last updated 5 hours ago
Jul 23 2008 | 9:36am ET
A hedge fund is suing Royal Bank of Scotland over a promise allegedly made by ABN Amro.
London-based Merebis Capital Management has filed suit in London High Court, accusing ABN—which was acquired by RBS last year—of failing to pay a £17.8 million (US$35.6 million) penalty for early withdrawal, which Merebis claims it is owed under the terms of ABN’s investment.
According to Merebis, founded by four former ABN traders, RBS asked to redeem all of the €250 million (US$397.2 million) investment made in the fund by ABN, which seeded the new hedge fund last July. Merebis claims that ABN agreed to a three-year lockup at the time, subject to exceptions, and that it is entitled to a 10% early withdrawal penalty.
The hedge fund says it repaid most of the investment this month—the sell-off of portfolio holdings pushed the fund’s loss from 1.7% to 5.9%—but that its request for the £17.8 million penalty has not been met.
Merebis was forced to shutter the fund after filling RBS’ redemption request; it raised very little money aside from the €250 million in seed capital.
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…
The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?