Northwater Says Fraud Affects Two Funds Of Funds

Oct 1 2008 | 9:01am ET

A Toronto-based hedge fund firm said yesterday it had to write down the entire value of a portfolio hedge fund that may have been the victim of fraud.

Northwater Capital Management did not identify the fund in question, which was held by two of its funds of hedge funds. But the firm, which manages C$8.5 billion, including C$4.8 billion in funds of funds, said it chose to write down the value of the fund to zero when calculating the funds’ net asset value for the end of the third quarter yesterday.

“Based upon the information it has received, it is not clear what portion of the trusts’ investments may be recovered, if any,” the firm said in a statement.

According to the firm, its Market-Neutral Trust had about 4.3% of its assets invested with the hedge fund in question; another fund, the Five-Year Market-Neutral Trust, had about 2.3% of its assets in the fund.


In Depth

FINalternatives Survey: We Asked Investment Pros...

Apr 2 2016 | 9:42pm ET

The data from our annual reader survey continues to roll in and provide interesting...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...