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16 Mar 2010

SEC Charges Texas Hedge Fund Adviser With Fraud

HedgeCo News - The SEC has filed a federal case against hedge fund advisor Stephen X. Kim and Spyglass Management, L.P. for their roles in allegedly defrauding Spyglass Capital Partners, L.P., a hedge fund managed by Kim through Spyglass. according to court filings.

The SEC complaint, filed in Texas, alleges that between in 2004 and 2006, Kim and Spyglass raised approximately $4.7 million from investors located primarily in Houston, Texas using offering materials that contained misleading information relating to Kim's education, business experience, and compensation.

The SEC alleges that Kim and Spyglass failed to employ any hedging strategy to manage risk, causing the hedge fund to loose over $2 million then directing the hedge fund to make approximately $1.7 million in Ponzi payments to investors.

Finally, the SEC alleges that Kim misappropriated approximately $1.5 million of the hedge fund's remaining assets to repay several outstanding personal obligations.

Without admitting or denying the allegations, Kim and Spyglass have made a settlement with the SEC, which is subject to the approval of the United States District Court for the Southern District of Texas.

SSARIS Wins Fund of Hedge Fund Award

HedgeCo News - Hedge fund and FoHF manager, SSARIS Advisors, LLC, won the "Global Multi-Strategy ($500 million -$1 billion) over 3 years" award at the annual InvestHedge FoHF Awards ceremony held last night in New York City. SSARIS won in the Multi-Manager Absolute Return Strategy category.

To qualify, all funds of funds must provide a strategy allocation breakdown for each fund nominated. InvestHedge has the final say in which category a fund is nominated. Winners are decided using an established methodology based on a combination of Sharpe ratios and returns over the relevant time period.

SSARIS Advisors, LLC is a majority-owned subsidiary of State Street Global Alliance, LLC. SSARIS Advisors, LLC was founded in 2001 and is directed by Mark Rosenberg, Chairman and CIO; Peter Hinrichs, CFO and Chief Compliance Officer; and Jim Tomeo, COO and Senior Portfolio Manager.

With $1.9 trillion in assets under management, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich, and offices in 26 cities worldwide.