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Infinity Q Capital Management Plans to Return $500 Million to Mutual-Fund Investors

edited June 10 in Fund Discussions
“Infinity Q Capital Management says it plans to return approximately $500 million to investors who were unable to get their money back after the investment firm halted redemptions on a then-$1.7 billion mutual fund earlier this year. It remains unclear how much investors will eventually recoup from the Infinity Q Diversified Alpha Fund. The fund currently has around $1.3 billion on hand—well below where it was last valued in February—and it will keep $750 million in reserve …

“(The) firm unexpectedly halted redemptions in February and said it couldn’t value its holdings. The move stunned market participants, some of whom viewed their investments in the fund as a hedge to their broader portfolios. Infinity held wide-ranging bets across stock, currency and derivatives markets, including over-the-counter positions … Infinity appeared to have misvalued its large derivatives portfolio. Some of the valuations it disclosed were too high and, in one instance, mathematically impossible.”

From WSJ June 9, 2021


  • I don't understand why. I thought there were reasons for it's opaqueness.
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