Current news for this fund:
Lake Shore Asset Management - Commodities
Count of distinct funds: 1
It looks like Lake Shore has finally been rolled up. Managing director Philip J. Baker was finally charged with 27 counts of crimes, including wire fraud, commodities fraud and "other offenses." However, Baker is on the lam, so the saga will, in some sense, continue...
Original Post, 2007-06-28
Lake Shore Asset Management, a hedge fund chaired by Laurence Rosenberg, who was former chairman of the Chicago Mercantile Exchange, has had $228 million in assets frozen by federal court at the request of the Commodity Futures Trading Commission (or "CFTC") for failing to comply with requests by the CFTC for information. Further, the hedge fund has been accused of hiding behind Swiss bank secrecy laws.
The fund held under management around $1 billion in assets trading in commodities futures. Bloomberg reported on June 28th:
Lake Shore's hearing was set to be held on July 11th. The latest news we have heard regarding Lake Shore is that the CFTC wants the fund held in contempt (July 6 - Chicago Tribune):
Lake Shore claims they have only one U.S. client. In accordance with Swiss banking secrecy laws, the fund is not allowed to release the identities of its investors. The Financial Times reported (July 6):
Stay tuned ...
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Important: This fund is on our list of hedge funds that have "imploded" (see also ailing lenders). However, please note that "imploded" is a somewhat subjective. The "imploded" list contains hedge funds (or other unregulated and autonomous speculative investment funds) which have gone through some sort of permanent adverse change. This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid mark-downs in net asset value; or abnormal "bail-out" by corporate parents or peers in order to avoid write-downs and provide liquidity. The funds are of any type and sector.