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

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...