Portus Investors May Get 85% Back
Considering the victims of hedge fund scams may recover little or nothing, investors in Portus Alternative Asset Management have something to cheer about.
Considering the victims of hedge fund scams may recover little or nothing, investors in Portus Alternative Asset Management have something to cheer about. A preliminary report by court-appointed receiver KPMG suggests that the 24,000-plus investors stand to get back 85.8% of their investment. The report is to be announced at a creditors meeting set for Wednesday in Toronto, to which founder Boaz Manor has been invited to attend – either live or through videophone – but has yet to respond, according to the Globe and Mail. Holed up in Israel, Boaz faces charges in Canada for his role in PAAM’s collapse. So far, KPMG has received 17,775 proof-of claim forms out of the 18,250 sent for a total for C$437.5 million, who will share most of what was found. In addition, Manulife Securities International has staked claim for C$245 million, after it paid to its clients tt invested in Portus from its own pocket 100% of their investments. There’s another C$17 million in U.S. accounts not yet recovered. In the end, claimants will receive less than the 85% or so, once costs associated with the recovery, such as more than C$13 million in associated fees for the receiver and lawyers, among others. Meanwhile, investors of defunct hedge fund Norshield Financial Group can only sigh at the good news for PAAM peers. Recently Norshielders were told they’d be lucky to see 10 cents on the dollar. Ouch.