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

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

Securities and Exchange Commission Chair Mary Jo White will step down as chair of the nation’s Wall Street overseer in January, setting the stage for a potential conservative shift in the regulator’s leadership under the incoming Donald Trump administration.