Jefferies Winds Down Hedge Fund 352 Capital in Wake of Lawsuit
- Firm sold bonds tied to marine transport business Centerline
- More sales coming amid 352’s suit against ex-portfolio manager
352 Capital has begun selling some of its asset-backed bonds and plans to unload more in the coming months.
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
Jefferies Financial Group Inc. is winding down trading positions at its hedge fund 352 Capital, after the fund sued its former portfolio manager over an alleged fraud, according to people with knowledge of the matter.
Over the last few weeks, 352 has begun selling some of its asset-backed bonds and plans to unload more in the coming months, said the people, declining to be identified as the details are private. The portfolio will be unwound gradually in order to protect investors, one of the people added.