Fri, Aug 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

AlphaMetrix denies fraud charges

Monday, January 20, 2014

Komfie Manalo, Opalesque Asia:

Chicago-based investment fund administrator and commodity trading adviser AlphaMetrix Group has denied fraud charges brought against it by the Commodity Futures Trading Commission in a botched plan to pay $2.8m to customers in rebates.

AlphaMetrix told the court that the CFTC was responsible for preventing the firm "from effectuating its repayment of all of the rebates owed, the complete liquidation of the Funds at 100 percent of their value and the full repayment," reported Chicago Business.

In a lawsuit the CFTC filed in November against AlphaMetrix, the agency accused the firm of allegedly misappropriating $2.8m that should have been paid to its clients.

However, AlphaMetrix defended itself and said that CFTC lawsuit and its move to appoint a corporate monitor to oversee the dismantling of AlphaMetrix actually prevented them from returning some $600,000 to clients. It added that they already settled the $2.2m it owed to one client after it signed a promissory note in October that both sides have agreed on.

AlphaMetrix told a court in Chicago, "While AlphaMetrix was entitled to be paid (and in fact was paid) the fees subject to the side letters, AlphaMetrix agreed in certain side letters to rebate certain fees to the pool participant by reinvesting such fees back into the Funds at a later ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Kyria Capital Management bets on women hedge fund managers[more]

    Bailey McCann, Opalesque New York: As hedge fund assets top $3 trillion, and long/short strategies get more crowded than ever, with every manager hunting for even the tiniest bit of alpha, a new firm has emerged that claims its own edge – women. A recent Rothstein Kass study showed women-owned a

  2. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  3. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass

  4. Opalesque Exclusive: Q2, H1 end positively for hedge fund performance[more]

    Bailey McCann, Opalesque New York: New hedge fund monitor data from Citi Prime Finance shows that overall, hedge funds ended the month of June and the first half of the year positively. Composite hedge fund performance, equal-weighted across funds, ranged from +0.93% to +1.73%. June-14 performa

  5. Many CTAs have become more short-volatility in the last five years[more]

    Benedicte Gravrand, Opalesque Geneva: Quantitative easing has reduced and then suppressed volatility for the last five years. So analysts at R.G. Niederhoffer Capital Management recently examined if there had been a tendency for CTAs and hedge funds to adjust their styles to become more 'shor