Alphametrix, one of the largest independent alternative investment platforms for hedge funds and managed futures, said it has “encountered significant cash flow issues,” according to a letter obtained by Opalesque and confirmed by multiple commodity trading advisors.
The letter also announced the firing of its Chief Financial Officer and said the firm retained the services of accountant Arthur Bell to “review and assist us in improving our internal controls and recordkeeping procedures.”
“In operation of our business, we regularly run intercompany balances between and amongst our affiliates,” the letter said. “Our regulated commodity pool operator, AlphaMetrix, LLC (the CPO) is one such affiliate with whom there are intercompany balances. The CPO’s assets consist largely of a receivable owed to it by (the) Parent. Parent has recently encountered significant cash flow issues and is working to strengthen its current financial position and its continued operation.”
The letter announced it will no longer pay hedge fund and Commodity Trading Advisor (CTA) management and incentive fees. Alphametrixis a technology platform that enables institutional investors and qualified eligible participants to invest in hedge funds and managed futures programs.
DISCLOSURE: These are the opinions of the author and may not have considered all risk factors. Nothing on this web site should be construed as an individual recommendation, talk to your independent advisor. The author and Opalesque may have relationships with those people they cover in the publication. Mr. Melin provides a full disclosure of his business relationships to regulators and certain eligible participants who engage him in consulting projects. Managed futures investing involves risk and there are no guarantees of safety or future performance being implied. Managed futures can be a risky investment. This web site and its content is subject to the terms of the web site. Risk Disclosure and terms of web site are available here: http://www.uncorrelatedinvestments.com/templates/Disclaimer.html Performance information received on this site is provided by third parties and deemed reliable but there is no guarantee relative to same. Performance reporting sources and quality assurance techniques may include, but are not limited to: disclosure document, CTA self reporting, brokerage firm reporting, consultant reporting, spot checking other reporting databases; nonetheless no guarantee of accuracy or implication performance verification or auditing is being made by the publishers. The CTA Database is a project separately managed from www.uncorrelatedinvestments.com.