Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
Courthouse News Service – The founder and general partner of a $5 billion hedge fund used the company’s CFO as a scapegoat when investors found out he used their money to buy a private Gulfstream jet, the former CFO claims in Federal Court. Perry Gruss claims that Daniel Zwirn, of D.B. Zwirn and Co., told him he had to leave the company so Zwirn could remain ”pearly white” and ”bullet proof.”
Zwirn and Co. once managed more than $5 billion in assets. Gruss claims its founder began to live the life of an ”investment magnate,” including the private jet, ”scores of professional and personal assistants,” and a vacation home on the East End of Long Island.
Courthouse News Service – Hedge fund operates took more than $2.5 million in kickbacks while putting clients into grossly overstated Wealth Management LLC accounts, the SEC claims in Federal Court. It sued the hedge fund, its managers James Putman and Simone Fevola, and several relief defendants.
Wealth Management claims to have 447 clients for whom it manages $131 million, $102 million of it in Wealth Management funds, the SEC says.
Courthouse News Service – A Beverly Hills man defrauded his family and friends of $44 million by persuading them to invest in his two nearly worthless hedge funds and spent the money on a Malibu Beach home, Porsches, and poker, federal prosecutors say.
Bradley L. Ruderman, 46, quoted as a financial expert by national media, surrendered on Friday after being named in a criminal complaint charging him with fraud.
InvestmentNews – Three former investment managers in Boston are planning to launch a hedge fund in April, according to a report published by FINalternatives, a news service of Stone Street Media LLC.
The firm, Vernon Square Capital LLC, is developing a market-neutral hedge fund, the New York-based news service said.
Based in Boston, the firm was founded by Robert Earl, formerly of The Goldman Sachs Group Inc. of New York, and Richard Weed and Geoff Kelly, both formerly of Putnam Investments of Boston.
