Culross forges path for Cayman clarification
July 05, 2011
Paperwork glitch caused extended legal headache
By Niki Natarajan
This is a cautionary tale for hedge fund investors large and small: make sure the language of the Articles of Association and supporting offering documents tally. Culross Global Management has learned the hard way that no matter how good the due diligence on a manager is, how they play when the chips are down can show a completely different face.
The story of Culross Global SPC versus Strategic Turnaround Master Partnership Limited (STMP) started as one investor trying to redeem from a fund, and concluded by creating case law for what happens when a fund suspends redemptions before the investor’s name is taken off the register of members.
Due to a delay that always occurs when a redemption notice is served and accepted, and the time that the shareholder becomes a creditor, Culross found itself setting a precedent by being adjudged to be both a...
The full contents of this article are available to active InvestHedge subscribers and trialists only.
TAKE A FREE TRIAL
To continue reading please, take a free trial, subscribe or log in to InvestHedge.
Subscribers have unlimited access to all current content, including fund performance Live League Tables. Start your subscription today - click on the button below.