Thursday, 26 May 2016
Last updated 2 hours ago
Aug 8 2008 | 9:29am ET
Is Finvest blowing up? Sources familiar with the multi-strategy hedge fund firm have told FINalternatives that that the firm is indeed going under. However, Gad Grieve, a principal at Finvest Asset Management, says those reports are simply bogus.
“I have absolutely no idea from where this originates, and clearly and categorically I must state that these suggestions are malicious and untrue,” declared Grieve.
Sources claim that management has undergone a change in personnel, and the firm's employees are either working from home or looking for work elsewhere. They also say that the firm has not been able to reconcile its payments to investors in its managed accounts. Grieve denies the claims.
“Yesterday, there was a power failure in the block and staff in our New York office left earlier than usual at 4pm,” said Grieve. “There are absolutely no issues that we have with any of our investors.”
Grieve also forwarded a copy of the Yankee Fund’s performance, which states that the fund is up 11.36% through June.
Still, a cursory attempt to access the firm’s once accessible Web site was unsuccessful. Grieve explained that the site is currently under construction.
Earlier this year, Grieve said the firm faced a “small” margin call when an unidentified long/short manager in theYankee fund found himself in hot water after it was discovered that he was misrepresenting himself to investors by claiming that he was trading his own personal funds, when, in fact, he was trading under Finvest’s name. His investors then sued the manager and reported him to the Securities and Exchange Commission. The actions resulted in a court ordered freeze of the manager’s account, which, of course, belonged to Finvest.
“And once that account was frozen, it just triggered a small margin call, which was rectified almost immediately. It didn’t affect the fund and the whole thing happened in one day,” said Grieve, adding that the firm immediately fired the manager.