Ritchie's disenfranchised

Wed Nov 1, 2006

Left with little but their anger, investors okay a restructuring

When Ritchie Capital Management held special meetings in New York and Chicago earlier this year for clients with capital locked up in Ritchie Multi-Strategy Global's side pocket, frustrated clients didn't hold back their rage. As Ritchie executives read through an itemized list of investments allocated to the side pocket - or "designated investments" in Ritchie parlance - during the New York meeting, attendees rose from their chairs and shouted objections to each poorly performing position. "One guy in the back was standing up the whole time, just yelling," recalls one attendee. "I've been in this business a long time, and I've never seen people act like that."

Ritchie's gesture to temper growing antagonism between management of the Geneva, Ill., hedge fund firm and its investors followed a sweeping reorganization of the flagship Ritchie Multi-Strategy Global portfolio in August 2005. But instead of...

ISSN: 2151-1845 / CDC10004H


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