Hedge Funds

SEC aiming to freeze Northshore assets


Northshore Asset Management allegedly "wrongly diverted" $37 million in assets from two hedge funds, according to a complaint by the U.S. Securities and Exchange Commission. The allegations come as the regulator seeks to freeze Northshore's assets.

The SEC alleges that Chicago-based Northshore wrongly diverted the $37 million from two hedge funds, Ardent Research Partners, L.P. and Ardent Research Partners, Ltd. That sum was then invested in two illiquid securities in which Northshore had interest, the SEC claims. The regulator says Northshore misled and went against the wishes of underlying investors who sought to have their capital returned.