Tue, Apr 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Singapore orders hedge fund 3 Degrees to shut down on claims of fraud

Wednesday, October 19, 2011
Opalesque Industry Update - On Tuesday, Singapore’s Monetary Authority (MAS) ordered 3 Degrees Asset Management Pte, a private independent asset management firm based on the island state, to shut down its operations on allegations that its founder Moe Ibrahim had diverted assets.

MAS is Singapore's central bank and supervises the banking, insurance, securities and futures industries.

According to a report from Bloomberg, the regulator and the Finance Minister gave 3 Degrees until November 29th to wind down its operations and withdrew its exempt fund manager status. The hedge fund manager is appealing the order and an October 20th closed door hearing was set to discuss the petition.

3 Degrees, which manages $215m in assets, was investigated by the MAS after Ibrahim was accused by investor Agus Anwar of diverting at least $3.7m (or $6.7m according to Bloomberg) from the fund’s assets. The allegation surfaced after one of 3 Degrees’ funds sued Anwar in 2008 to recover an estimated $40m in debt.

Ibrahim denies the accusations and said in court filings the transaction – if it had really occurred – would have been neither “illegal nor improper.”

Prominent former bank owner Indonesia-born Agus Anwar was in March this year declared bankrupt by the High Court in Singapore, reported The Straits Times. The debt-ridden businessman, who reportedly owed 23 creditors a total of $103.3m, had been trying to stave off bankruptcy proceedings by putting forward repayment proposals to his creditors.

3 Degrees is an established player in Asian credit markets; the firm announced the launch of the Credit Opportunities Fund with initial assets of $27.3m in Jan-10. In March-09, it also launched ADF Prime Ltd, a credit opportunities fund that invest primarily in the performing debt obligations of Asian companies that have been mispriced as a result of the credit crunch. 3 Degree’s flagship, the Asian Distressed Fund, was up 8% YTD as at end-June according to the firm’s website.
Precy Dumlao (edited by B.G.)

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner