Finvest Papers Over SEC Suite With Press Releases

Feb 13 2009 | 3:57am ET

In the wake of accusations of fraud, Finvest Asset Management is responding with a barrage of press releases.

With the Securities and Exchange Commission, which on Tuesday sued the hedge fund shop and founder Grant Grieve for allegedly lying to investors, casting doubt on Finvest’s money-management business, the firm claims it is going into the job-creation business. The firm issued a press release on Wednesday declaring that it “will create 50,000 new jobs in 2009.” Writing that “empirical evidence” shows that every $1 billion spent creates 18,000, Finvest uses its allegedly questionable arithmetic skills to show the economic impact of the $2.5 billion equity mandate it recently won.

In this case, of course, if you accept the “empirical evidence,” the math is spot on. Not so, says the SEC, of its claims about its funds’ returns. The regulator says he showed an investor a brokerage statement showing that one of its hedge funds, the Primer Fund, had $118 million in a trading account. In fact, that account had a negative balance of $65, according to the SEC.

Of course, the Primer Fund is not long for this world. Finvest put out another release yesterday, announcing its plan to wind down the fund without mentioning the SEC complaint. According to Finvest, it will liquidate the fund and return all allocations to investors over the next six months, whereafter it will focus more attention on its new job-creation initiative.

“The economy needs job creation, companies need capital, and we will be aiming to work with other strategic partners, who are like-minded in identifying solutions and goals, to resolve or break the current credit and capital hiatus,” Neil Saunders, a Finvest analyst, said of its plans to expand its “pure equity” and fund of funds activities.

According to the release, Primer “experienced modest growth” during its eight-year run, with a “minimally positive return” last year.

RELATED ARTICLES:

Finvest, Founder Charged With Fraud
Hedge Fund Finvest Denies Claims It Is Blowing Up


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Hedge Fund Managers Among Top Tory Donors

Nov 14 2014 | 5:34am ET

Three hedge fund managers are among 32 people paying for the privilege of dining...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.