WEST PALM BEACH, FL (HEDGECO.NET) – The Texas hedge fund company, Veras Instruments Partners has lost its hedge fund license according to published reports. The Texas Securities Commissioner DeniseVoigt Crawford made the disclosure to Wall Street Journal news correspondents.
Reasons for the revocation of Veras Instruments Partners registration papers are not so obvious. Veras was also named as one of large investment managers involved in the mutual fund late trading and timing scandals, in which several mutual fund managers and hedge funds were also implicated using illegal timing techniques in trading.
�Timing” refers to the practice of short term buying and selling of mutual fund shares in order to exploit inefficiencies in mutual fund pricing. Timing techniques can dilute the value of mutual fund shares to the extent that a timer is permitted to buy and sell shares rapidly and repeatedly to take advantage of arbitrage opportunities.
The same commissioner�s order also revoked registration licenses of McBride and Kevin Larson as investment adviser representatives. While no specific reasons were cited for the action against Veras Instruments Partners, informed sources said the revocation may be connected to the lack of cooperation from Veras during the investigations arising from the mutual fund scandals. An unidentified source said �Veras also failed to provide information deemed necessary by the commissioner to determine the firm’s business repute and qualifications�.
Veras has since ceased operations and had returned an estimated US$500 million of investor assets back to investors.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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