Tremont Group Holdings has shuttered its Bernard Madoff-scarred Rye Investment Management division, it said yesterday.
The New York-based firm has suspended the operations of Rye, its single-manager hedge fund unit that had all of its assets under management invested with Madoff, who was charged last year with running a $50 billion Ponzi scheme. Before the scandal broke, the Rye, N.Y.-based unit managed $3.1 billion.
The decision to close Rye is part of a broader restructuring of Tremont “to reflect market conditions and the reduced amount of assets under management,” the MassMutual unit said in a statement. In addition to Rye’s losses, Tremont’s fund of hedge funds unit, Tremont Capital Management lost some $190 million invested with Madoff.
Tremont made clear that the closure of Rye did not mean the foreclosure of attempts to recoup its losses in court.
“While the Rye Investment Management unit is permanently suspended, it also retains the staff necessary to seek to recover any available Madoff assets,” the firm said.