Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Rydex is a Refco Victim Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, January 03, 2006

Rydex is a Refco Victim

by: Sean Hanna, Editor in Chief

The recent freezing of a hedge fund is leading Rydex to open end one of its funds. The chain of events was set in motion by last fall's Refco bankruptcy filing.

Refco was a disaster for its shareholders, including a hedge fund run by PlusFunds. As the MFWire reported last week, PlusFunds was forced to cease redemptions in its SPhinX Managed Futures fund after the court overseeing the Refco bankruptcy froze some expected payouts.

PlusFunds' decision then hit Rydex's SPhinX Managed Futures fund, a $200 million closed end fund that has 11 percent of its assets invested in the PlusFunds hedge fund. The Rydex fund is a fund of funds investing in hedge funds.

To fix the situation, Rydex is planning to merge the SPhinX Managed Futures fund into its Absolute Return Strategies Fund, according to an SEC filing.

The changes to the fund's structure require board and shareholder approval and will likely take until at least May 1, according to the filing.

Shareholders in the fund will see 90 percent of their account credited initially and the remaining 10 percent frozen based on the results of PlusFunds payouts and the Refco proceedings.

"We don't consider liquidity concerns to be acceptable in a product of this structure," Jeff Joseph, managing director of the alternative investment group at Rydex Investments, told the Wall Street Journal

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use