Ritchie Capital Management filed a complaint in Cook County Circuit Court in Chicago against three disgruntled investors in its multistrategy fund. Ritchie Capital’s complaint alleges breach of contract, violation of confidentiality agreements and disparagement of the firm’s founder, A.R. Thane Ritchie, and its hedge funds. Ritchie Capital seeks to recover declaratory relief and monetary damages from hedge fund-of-funds managers Benchmark Plus Partners, Benchmark Plus Institutional Partners and Sterling Low Volatility Fund, according to the court filing.
“This action is part of our efforts to protect the fund and its investors from further damages caused by Benchmark Plus and the Sterling Low Volatility Return Fund,” according to a statement from Ritchie Capital.
The three managers, all investors in Ritchie’s troubled onshore hedge fund, Ritchie Multi-Strategy Global, jointly filed a petition Dec. 26 in U.S. Bankruptcy Court in Chicago, seeking involuntary Chapter 11 bankruptcy protection and financial disclosure about the fund.
