Fri, Mar 6, 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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Patrick McCormack to shut down hedge fund Tiger Consumer[more]

    Komfie Manalo, Opalesque Asia: Patrick McCormack is shutting down his hedge fund Tiger Consumer Management after 15 years "to spend more time with his family," reported Reuters. Tiger Consumer ended February up 4.6% (+3.9% YTD) and assets roughly $1.4bn, reported

  4. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  5. Outlook - 5 reasons why 2015 is looking like a breakout year for alternative investments, Hedge fund manager Dan Loeb predicts disappointment for funds seeking energy distress[more]

    5 reasons why 2015 is looking like a breakout year for alternative investments From Forbes.com: …After a strong 2014, the public markets have been off to a choppy start in 2015. This year, savvy investors may be looking for alpha elsewhere. For many institutions and high-net-worth indivi