The collapse of Lehman Brothers has put on hold the launch of a new Shariah-compliant fund of hedge funds.
Amiri Capital has had to shelve plans to launch the Amiri Equity Alternative Strategies fund, for which it had lined up Lehman as prime broker, this summer. But the firm said it will “definitely go ahead” with the launch once a new prime broker is found, but gave no time frame for its debut, Thomson Investment Management News reports.
The Amiri fund’s system was developed in conjunction with Lehman, which had agreed to a system of “promise notes” to get around Islamic law’s ban on short selling.
Amiri said it is in talks with two or three possible prime brokers.