Platinum Partners: hedge fund execs charged with $1B in fraud case

Platinum Partners the latest in the saga – Color me not shocked

@JacobWolinsky so if SEC/FINRA etc wont act on some public info until its front page news for $1B fund what does that say?

— Jacob Wolinsky (@JacobWolinsky) December 21, 2016

Murray Huberfeld, Platinum Come Under Pressure

From an investor document obtained by ValueWalk

Platinum Partners Value Arbitrage Fund LP (“PPVA”) is a multi-strategy fund designed to achieve superior risk-adjusted returns irrespective of the direction of any broader market activity. PPVA deploys assets opportunistically across various strategies, including short term relative value, event driven, and asset based finance. The General Partner believes that superior returns are a function of appropriately managing downside risk and seeks to invest in a mix of uncorrelated strategies. PPVA employs 27 investment and 19 operations professionals.

Hedge Fund Letters

Platinum Partners (the “Firm”) is a New York based investment management group with more than $1 Billion in assets under management. The Firm was founded in 2003 by Mark Nordlicht, an investor with over twenty years of experience in the asset management space. The Firm manages multiple funds, including Platinum Partners Value Arbitrage Fund L.P. (“PPVA”); Platinum Partners Credit Opportunities Master Fund L.P. (“PPCOMF”); Platinum Partners Liquid Opportunity Master Fund L.P. (“PPLO”); Bayberry Consumer Finance Fund LLC and Bayberry Consumer Finance Fund International Ltd. (collectively, “Bayberry”); and Platinum Partners Black Elk Opportunities Fund LLC and Platinum Partners Black Elk Opportunities Fund Intl Ltd. (collectively, “PPBE”). Although each of the aforementioned funds has separate investment advisors, Mr. Nordlicht is the CIO of the investment advisors of PPCOMF, PPVA, and PPLO and a Principal of the investment advisor of PPBE. The CIO of the investment advisor of Bayberry is a Managing Director of PPCO.

 

Platinum founder Mark Nordlicht along with six other hedge fund executives have been arrested and charged in a $1 billion fraud case, according to Justice Department officials. The company, an investment management group founded in 2003, has more than $1.3 billion in assets under management. The hedge fun specializes in distributing loans to struggling companies, and has been previously involved in a public-corruption investigation. The company told companies earlier this year that they planned on liquidating funds, but were unable to immediately repay them.

Video and charts below

Platinum Partners

Platinum Partners

 

 

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