Forbes – Paris-based fund of hedge funds Stratus Fund Limited is postponing redemptions and halving its management fees due to losses incurred from the meltdown of Sentinel Management Group, a U.S.firm that manages short-term cash for commodity traders, such as hedge funds.
In a filing with the Irish Stock Exchange Wednesday, Stratus said it will postpone both redemptions and calculation of its net asset value until Sept. 28, citing exposure of one of its funds to Sentinel. Stratus, which manages more than $2 billion in assets, will also reduce management fees by 50 percent until Sentinel-related losses are recouped, either through trading performance or legal action. Officials from Stratus weren’t immediately available for comment.
Earlier this month, Sentinel told clients it was having trouble meeting redemptions and filed for bankruptcy a few days later. The firm blamed its difficulties on the larger liquidity crunch, but the U.S. Securities and Exchange Commission has since filed a complaint against the firm alleging fraud and misuse of client funds.
