This is Money- Pentagon Capital Management, a hedge fund run by Lewis Chester, a Tory donor and friend of David Cameron, today became the latest to fall victim to the credit crunch.
Chester decided to close the fund, which has about £1bn under management and is based in Knightsbridge, after the US Securities and Exchange Commission filed a civil complaint against him and one of Pentagon’s old funds last week.
He has written to Pentagon investors telling them he is winding down the fund and returning their money. It is thought Chester told investors that, in the wake of the SEC complaint, lenders would become nervous about backing the group and force it to sell assets in a falling market.
