Hedge Funds

CIBC in hedge fund arbitration deal


Canadian banking giant CIBC has been ordered by an arbitrator to pay almost $3.6 million to about a dozen investors in the U.S. who allegedly lost some $5.5 million on a hedge fund marketed by the firm.

Among the investors who lost money investing in the New York-based hedge fund was former Big Leaguer Bobby Bonnilla. The arbitration case arose when investors claimed that they had lost money, in part, because CIBC had failed to conduct proper due diligence for its Red Coat funds. Some of the Canadians who put money in the funds were retail investors who