Hedge Funds

Regulator suspends Hong Kong fund of funds


Current and prospective investors in a $200 million Hong Kong-based fund of funds were notified this week that the Hong Kong's Securities and Futures Commission had suspended the firm's operations.

In a press release, the SFC said it had taken the action based on "suspicion that client assets might have been misappropriated," as well as the "unsatisfactory answers" of the manager, Charles Schmitt, in responding to questions about "transfers of client monies into bank accounts with which he is connected."

Investors were told of the action in letter from chief financial officer Jennifer Carver and managing director Brian MacDougall, the