The Clinton Group's flagship hedge fund will post a 6.4% loss for October, adding to the woes of the multibillion-dollar management firm, according to reports.
New York Sun
today said the group told investors its flagship Trinity Fund would report a sizable loss for last month, at a time when the firm is already reeling from $1.5 billion in investor redemptions and authorities are investigating the firm's asset pricing.
The firm came under Wall Street scrutiny at the end of October, when former senior trader Anthony Barkan resigned and issued a public statement that he was concerned about the way the firm prices its asset-backed bond portfolios. The firm said it was surprised by Barkan's concerns and hired PricewaterhouseCoopers to examine its valuations.
Securities and Exchange Commission
and the Commodities and Futures Trading Commission then launched investigations of their own.
None of the three investigations has been completed, according to a person familiar with the firm.
Through the end of September, the Trinity Fund had about $935 million and was down 7.13% for the year to date.
Clinton manages about $4 billion in hedge funds and another $5 billion in collateralized debt obligations. Its Global Fixed Income Fund was down 3.19% through the end of September, but the firm's $1.9 billion multistrategy fund was up 1.78%, despite about $200 million in investor redemptions.