The Chicago-based unit of London’s Man Group, the world’s biggest publicly traded hedge fund firm, has fended off Hodgson’s efforts to extract cash for victims of the alleged fraud. Man Financial said in an October court filing that Hodgson’s allegations at the time were “grossly improper and unsubstantiated,†and denied that it “knowingly consented to, or assisted†any misconduct at the Philadelphia fund.
Investors in Philadelphia Alternative’s funds, which traded commodities futures and options, include TAG Associates, a New York-based money manager that oversees about $4 billion and caters to wealthy families. Fortune Group, based in London, invested $15.5 million, according to a court filing in the Cayman Islands. Sperry Fund Management, a New York-based firm that oversees about $500 million, invested $22 million, according to Douglas Sperry Makepeace, the firm’s president.
The U.S. Securities and Exchange Commission and the Federal Bureau of Investigation are also investigating the matter, court records show. The lawsuit, and the risks to a defendant facing RICO claims, may make a settlement more likely.
Alex Akesson
Contributing Writer
HedgeCo.Net
Email: [email protected]
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