Pioneer Isolates Madoff Bets, Suspends Subscriptions

Jan 2 2009 | 10:46am ET

Pioneer Alternative Investments has had to restructure a pair of its funds of funds hurt by exposure to Bernard Madoff’s ponzi scheme.

The firm has established separate portions of their funds of funds to isolate their exposures to Madoff, Financial News reports. Directors of the firm’s flagship AllWeather fund and Momentum AllWeather Strategies have also frozen subscriptions to their portfolios, according to a filing with the Irish Stock Exchange.

The firm said in a regulatory filing the move would “protect existing investors in the fund from the illiquid assets, which the fund has received and which represent approximately 27% of the net asset value of the fund.”

AllWeather was exposed to Madoff via its investment in the $2.8 billion Kingate Global fund.

Investors withdrawing from AllWeather and at least five products feeding into it will receive their redemption partly in cash and partly in shares attached to the isolated portion of the vehicle.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Ex-Hedge Fund Billionaire Won’t Run For Senate

Jan 23 2015 | 5:48am ET

Ex-hedge fund manager Tom Steyer will not run for Senate after Sen. Barbara Boxer...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note