Bloomberg- Ritchie Capital Management LLC, the operator of four hedge funds that failed since 2006, is fighting what may be an unprecedented bid by investors to recover their money by forcing one of the funds into bankruptcy.
If the effort succeeds, Ritchie may have to open its records to an extent rarely seen in the secret world of hedge funds. The scrutiny might reveal trading strategies, expose managers to lawsuits over losses and inspire investors in other funds to follow suit.
“Hedge funds aren’t like public companies subject to disclosure,” said Jay Westbrook, a University of Texas bankruptcy law professor. “They operate in the dark, and they like it there.”
