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Alternative Market Briefing

Source: AlphaMetrix in negotiation for sale of firm, but bankruptcy more likely outcome

Monday, October 21, 2013

Mark Melin, Opalesque Futures Intelligence, Chicago:

AlphaMetrix, the investment platform connecting primarily institutional investors with hedge funds and managed futures programs, has suspended paying performance and incentive fees to the funds on its platform and fired its Chief Financial Officer, according to a letter dated October 10 and sent by the firm’s CEO Aleks Kins to hedge fund managers. Several managed futures commodity trading advisors report being owed in the neighborhood of $100,000 in fees while one CTA pegged their number at $2.5 million.

As of this writing there is no indication customer funds have been illegally transferred and no enforcement actions have been taken, but speculation is an investigation file is not yet closed. Regulators are said to have been in AlphaMetrix’s office monitoring the situation.

The letter was the first public manifestation of a firm having difficulty, but previous clues to the problems existed. Sources indicated staff layoffs and a drop in assets under management had provided indications as to the troubles preceding the public letter, as well over $1 million in invoices are said to remain unpaid after their recent Monaco Conference. It is unclear if cancelation of a technology contract for AlphaMetrix to provide transparency into bank balances of various futures brokerage firms to CMEGroup and National Futures Association (NFA) occur......................

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