Distressed investment firm Marble Ridge Capital plans to cut its funds after a government report questioned the actions of its managing partner, Dan Kamensky, in the bankruptcy of the Neiman Marcus Group, the company said.
“After much deliberation, and in light of the management environment, we have made the difficult decision to begin an orderly liquidation of the Marble Ridge funds,” the company told customers in a letter seen by Reuters.
“Marble Ridge will manage the liquidation in the best interests of our investors and with the goal of protecting and enhancing the value of the funds’ assets.”
Robert Siegfried, an external spokesman for Marble Ridge, declined to comment.
Reuters and other media reported Thursday that Kamensky made a ‘serious mistake’ to the US Department of Justice’s Trustee Department, which oversees bankruptcies, in interference with a potential bid for certain luxury retailer’s assets. .
His actions, described as pressure on a Jefferies employee not to bid on certain Neiman assets, were made public in a report by Henry Hobbs, acting U.S. curator for the western and southern districts of Texas, ahead of a planned hearing. for a judge to consider Neiman’s reorganization plan.
“While we understand you may have questions, we are unable to comment on the contents of the report,” Kamensky wrote in Thursday’s letter.
Marble Ridge, based in New York and founded in 2015 by Kamensky, a former partner at hedge fund firm Paulson & Co., had $ 1.2 billion in assets under management as of Dec. 31, a registration certificate showed.
A Marble Ridge investor told Reuters last Thursday that closing down the company’s hedge funds was the “correct and inevitable result” of the event.
“Sophisticated institutional firms do not behave as Marble Ridge is described in the Trustee’s report,” the client said.