Hedge Funds

CFTC freezes assets of Canadian futures fund


A Canada-based futures fund run by Philadelphia Asset Management recently had its assets under management frozen by the U.S. Commodity Futures Trading Commission, which has accused firm principal Paul Eustace of misleading investors about trading gains.

Some $230 million had been raised for the Philadelphia Alternative Asset Fund and associated pools, according to the CFTC. Regulators claim investors were misled when the firm's website allegedly reported that the strategy posted profits in May, when in fact trading losses were roughly 50%, according to the CFTC complaint.

The same complaint also alleged that Eustace used false return numbers to bring