Ivy Closes Amidst Madoff Probe
Ivy Asset Management is being closed amid news that the Bank of New York Mellon is probing the hedge fund’s relationship with Ponzi schemer Bernie Madoff. Ivy clients, including several upstate New York pension funds, reportedly lost more than $100 million in Madoff’s scam. According to FINalternatives, the Bank is encouraging Ivy clients to move their money to one of the firm’s other two fund of hedge funds units, EACM Advisors and Mellon Global Alternative Investments. The Wall Street Journal reports that New York Attorney General Andrew Cuomo is investigating whether Ivy warned investors about its concerns about Madoff’s operations.
Ivy said in a statement quoted in the Wall Street Journal that it was
As outraged as anyone by Bernie Madoff’s fraudulent scheme. Ivy served as a sub-advisory consultant to experienced investment managers who, in turn, chose to invest their own client assets with Madoff. Ivy was deceived by Madoff like thousands of investors [as well as regulators]
At its peak, Ivy oversaw over $15 billion in assets, but by the end of last year, its assets had dwindled to just $5 billion. Most of Ivy’s employees have already been let go.
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