Komfie Manalo, Opalesque Asia: The arrest last week of Platinum Partners’ portfolio manager Murray Huberfeld has a profound effect on the hedge fund as the firm announced plans to shut down its main fund, Platinum Partners Value Arbitrage, various media reported.
Platinum said it plans to wind down its main fund after Huberfeld was arrested by Federal authorities on charges he bribed the head of New York City’s correction officers’ union, said Bloomberg.
However, Platinum insiders said that the company is still finalizing details of its plan to wind down the hedge fund. Platinum Partners Value Arbitrage has consistently generated strong returns, among the best in the industry, despite its position in an oil company that went bankrupt.
Since its launch in 2003, Platinum’s main fund has returned an average of 17% annually with no down years, despite some investments that seemed to go poorly.
Huberbeld was arrested last week after he was alleged to have handed a bag-full of money containing around $60,000 to Norman Seabrook, the president of the Correction Officers’ Benevolent Association, to secure a $20m investment from the union, reported The Journal.
The investment put a large percentage of the un...................... To view our full article Click here
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