Gad Grieve was a hedge fund manager who ran a hedge fund, in the pre-2008 era. His firm Finvest Asset Management’s core strategy was a trading strategy, which sold volatility.
Grieve hedged this by buying options on the VIX index and put options on the S&P 500. Although his flagship fund Finvest Primer managed to achieve annual returns of over forty percent during 2003/2004, these numbers, were significantly reduced to single figure digits, when market volatility dropped.
Grieve’s tenure as a hedge-fund manager came to a close, when the SEC filed an action against him. The SEC claimed that his returns were inflated and unreliable. The filing against Grieve was never served on him personally. Motions to defend a similar action against Grieve’s associate companies were not contested by the SEC.
Investors who were interviewed for this article were bewildered. “We really don’t know what the fuss was about,” said one high net worth individual who is connected with an asset management firm. “Grieve’s returns in his latter years were pretty pedestrian.”
Other punters in Grieve’s funds point to an unnamed investor who went rogue and reported the fund manager to the SEC. After Lehman’s collapse, illiquid conditions in the market reportedly resulted in Grieve having to freeze redemptions.
Trader’s in the know said that an investor who had become disenchanted about not being able to immediately redeem his funds, went to the SEC with a list of untrue allegations. “The hope was that Grieve would capitulate,” they reported.
A previous female employee Debra Silver, stated that she had worked on Wall Street for more than twenty years, but had yet to come across a firm which conducted itself with similar solid levels of integrity.
Rumors at the time suggested that a multi-million investment deal which would have eased Grieve’s liquidity crunch was scuttled. Traders believe this was a direct consequence of the rogue investor’s reports to the SEC and the SEC’s action.
Due to increased regulation the trend for traders was to move out of hedge fund styled structures.
Although Gad Grieve could not be contacted, there is no evidence to suggest that he has subsequently been active in the field of investment management or that he has any intention of returning. For more visit http://washingtonreview.blogspot.com/2018/08/rogue-investor-sank-gad-grieves-fund.html