In Canada there has been some problems with a few hedge funds. One called Portus sold the fund to brokers offering them large commissions and trailer fees.
The fund had a low minimum and promised investor that there money was guaranteed (pincilple) so did the brokers that sold the fund.
Well now it appears that a co-founder (now living in Israel, because he is ill, left the country, apperently there is no hospitals in North America..LOL) may have taken some money out of the fund.
Roughly $238 million is missing perphaps more, and investors wiil be lucky if they can recover 60% of the orginal amount. there also appear to be no guarantee.
Now would like to highlight how two Cdn. companies have dealt with this mess.
Manulife MFC sold some of these funds to their retail clients. However they have decided to cover all of the investments their clients made into the fund. This will cost MFC around $90 million (which is a small amount market cap is greater than $45 billion).
By responding quickly MFC saves their reputation and loss of business in the future. It is also the proper thing to do...have heard of some people who plan to leave MFC but more will probably stay since they did not lose any money and the company acted properly.
Another company Berkshire Securities owned by AIC funds (owned by Michael Lee Chin) has refused so far to refund their clients money. So now their name will be dragged through the courts and many stories of small investors will be told how they lost their money. Thanks to Portus and Berkshire Securities.
People have been redeeming money from AIC funds mainly due to bad performance the last few years. These redemptions will increase quickly if the fund company and Bershire Securities get mentioned anymore with Portus.
Wether the courts will rule in favour of the clients or not, because if not he may wish he had; due to a sharp drop in business at AIC, and Berkshire.
note: when looking up a hedge fund you must due a large amount of research. also be aware of the details with the fund. for instant this fund paid large amounts of fees to people who sold the fund. Also it seems no one checked out the guarantee.
and never buy a hedge fund starting out, have one with a solid track record and people who have been in the industry for years.
finally if you cannot begin to understand how the fund works you should also avoid the product.
more hedge funds are going to blow up.
thanks
selkirk
The fund had a low minimum and promised investor that there money was guaranteed (pincilple) so did the brokers that sold the fund.
Well now it appears that a co-founder (now living in Israel, because he is ill, left the country, apperently there is no hospitals in North America..LOL) may have taken some money out of the fund.
Roughly $238 million is missing perphaps more, and investors wiil be lucky if they can recover 60% of the orginal amount. there also appear to be no guarantee.
Now would like to highlight how two Cdn. companies have dealt with this mess.
Manulife MFC sold some of these funds to their retail clients. However they have decided to cover all of the investments their clients made into the fund. This will cost MFC around $90 million (which is a small amount market cap is greater than $45 billion).
By responding quickly MFC saves their reputation and loss of business in the future. It is also the proper thing to do...have heard of some people who plan to leave MFC but more will probably stay since they did not lose any money and the company acted properly.
Another company Berkshire Securities owned by AIC funds (owned by Michael Lee Chin) has refused so far to refund their clients money. So now their name will be dragged through the courts and many stories of small investors will be told how they lost their money. Thanks to Portus and Berkshire Securities.
People have been redeeming money from AIC funds mainly due to bad performance the last few years. These redemptions will increase quickly if the fund company and Bershire Securities get mentioned anymore with Portus.
Wether the courts will rule in favour of the clients or not, because if not he may wish he had; due to a sharp drop in business at AIC, and Berkshire.
note: when looking up a hedge fund you must due a large amount of research. also be aware of the details with the fund. for instant this fund paid large amounts of fees to people who sold the fund. Also it seems no one checked out the guarantee.
and never buy a hedge fund starting out, have one with a solid track record and people who have been in the industry for years.
finally if you cannot begin to understand how the fund works you should also avoid the product.
more hedge funds are going to blow up.
thanks
selkirk
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