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The Securities and Exchange Commission is joining the hunt into just what is going on at NIR Group, a Roslyn, NY small-cap focused hedge fund run by Corey Ribotsky.
The Wall Street Journal reports today that the SEC has sent a subpoena to NIR, seeking information about the stellar returns Ribotsky had reported to investors throughout much of 2008. It appears the SEC wants to know why Ribotsky suddenly froze redemptions in his fund last October, in the wake of Lehman’s demise, if the fund had been doing so well.
The Journal is late to the NIR story. Dealbreaker contributor Teri Buhl has been on this story for a while and gets kudos for pushing it forward. Forbes also was early in reporting on investor suits against NIR.
At this point, it’s not clear where this story will go. NIR investors have been grumbling about Ribotsky’s funds, which claim to manage some $700 million in assets, for a while now. It’s possible the SEC investigation is merely a response to some disgruntled investors.