Hedge Funds

More lawsuits launched at Bayou


Bayou Management, the Stamford, Conn., hedge fund that mysteriously shut down last month with at least $300 million in investor capital unaccounted for, has been sued by three smaller investors seeking to recoup missing funds, according to published reports.

On September 6, the Multi Dimension Fund, a New York-based fund-of-funds, filed a civil lawsuit against Bayou and its founder, Samuel Israel III, alleging fraud in a scheme that has allegedly left hundreds of millions of dollars in investor capital unaccounted for.

The Jewish Federation of Metropolitan Chicago and South Cherry Street LLC are also said to have both sued Bayou.