Things are getting a bit more difficult for hedge funds.
Hedge fund shutdown, probe hits Palm Beach:
[World News]: PALM BEACH, Fla.,, March 2 : A hedge fund that cost some Palm Beach, Fla.,, residents as much as $12 million to $25 million has been shut down and is under investigation.
The KL Financial Group, with assets of more than $200 million, told investors it ran out of money because of heavy trading losses, The Wall Street Journal reported Wednesday.
The Securities and Exchange Commission said it intends to seek a temporary restraining order to freeze any assets left in the fund, the newspaper reported.
The news of the investigation by the SEC and the Justice Department, along with the shutdown, hit particularly hard in Palm Beach, a popular beachside retreat for the wealthy.
"A lot of people in this town lost serous money," said Gary A.Klein, a Boca Raton, Fla.,, attorney who represents 20 KL investors.
Others close to the case said one investor lost $25 million and another was in for $12 million.
Hedge funds have become popular with wealthy investors and institutions, producing heavy competition that has making a profit tougher than it has been in the past.
- -- Copyright 2005 by United Press International.
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