Call it a case of global cooling: A temporary freeze on asset withdrawals in Illinois reportedly is having an effect in Switzerland. Ritchie Capital, according to Dow Jones Newswires, put withdrawals on ice late last year because of some valuation problems, though it denies it’s to blame. Dow Jones reports that the Geneva, lll.-based Ritchie intends to thaw the fund, maybe this quarter, once it settles the valuation issues. Still, the move sent ripples across the ocean. Bank Leu, the Credit Suisse Group unit based in Zurich was said to have likewise halted redemptions at its Prima Relative Value Fund, which invests in one of Ritchie’s multi-strategy hedge funds. The Swiss freeze, notes Dow Jones, is being viewed as “highly unusual,” according to one market player. But Ritchie thinks that’s rich. According to Infovest 21 News, Ritchie says it informed all its investors in its Ritchie Capital Multi-Strategy Hedge Fund that it was going to start investing in private equity and laid out all investor options in offering documents. Ritchie also says it has refunded most of Bank Leu’s money, with only a small portion still in the fund.
