Sudden Demise of $1.8 Billion Fund Points to Long-Feared Danger
- Infinity Q shuts mutual fund after swap valuations questioned
- SEC has long fretted about retail funds embracing derivatives
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An early sign of trouble for James Velissaris’s complex mutual fund emerged in the waning days of a chaotic year.
Investors in his $1.8 billion fund at Infinity Q Capital Management received a message in December that it would stop accepting new money at month’s end. Customers would be notified as soon as it re-opened.