AlphaMetrix Group announced it will shut down the funds of funds it manages using hedge/managed futures funds running trading strategies on its investment platform on Thursday.
“In light of recent redemption requests, AlphaMetrix has determined that its sponsored funds will no longer be able to effectively trade the investment strategy employed by each trading adviser,” according to a company statement provided Wednesday in an e-mail from Conor Shea, a spokesman.
AlphaMetrix said in the statement that it will stop trading in the funds “in the best interest of all investors” and will begin liquidation. The firm said it anticipates distributing 90% of fund assets to investors on Nov. 21. The remaining assets will be returned after a final audit.
Mr. Shea could not be reached by telephone or e-mail to provide further clarification.
AlphaMetrix Group “recently encountered significant cash flow issues” and has been unable to provide cash to its commodity pool operator subsidiary that manages the investment platform, according to an Oct. 10 letter to investors from Aleks Kins, AlphaMetrix CEO and president. Pensions & Investments obtained a copy of Mr. Kins' letter.
The National Futures Association had ordered AlphaMetrix to pay $600,000 of fee rebates it owes to managers on its platform by 5 p.m. CDT Friday or face prohibitions on trading and other penalties.