Sun, Nov 23, 2014
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. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  2. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  5. Hedge fund Oceanwood raises $2bn, to close to new investors[more]

    From Reuters.com: Europe-focused hedge fund Oceanwood Capital Management is closing its fund to new investors after its assets under management hit $2 billion (1 billion pounds) recently, a source with direct knowledge of the matter said. Oceanwood, a multi-strategy hedge fund spinout from Tudor Gro