The SEC has charged Michael Balboa, the former manager of
the Millennium Global Emerging Credit Fund that collapsed in
October 2008, with fraud as part of what the US regulator
describes as a 'multiple’ series of charges
against hedge fund firms and individuals.
Millennium Global Emerging Credit, run by former Salomon,
Greenwich and Rainbow man Balboa at London-based Millennium
Global Investments, had been an apparent high-flier in the
emerging market hedge fund universe before collapsing suddenly
in October 2008.
Until the end of September 2008, Millennium Global Emerging
Credit had appeared to be one of the stars in its space, and in
the European hedge fund industry generally – gaining
19% to the end of September, returning 25% on a rolling
12-month basis and achieving an annualised return from its
launch in December 2006 of some 25%.
At the time, it was thought that a sharp increase in margin