A gating war has broken out inside Paige Capital, a hedge fund run by two sisters who appear to only manage the money of one outside investor.The fund’s general counsel sent him an.. intimidating(?) letter that says:
“[W]e are fully prepared to litigate this matter to the bitter end because we will continue to manage your money, and collect management and incentive fees, until this matter is resolved many years hence.” Christopher Paige, Paige Capital’s general counsel, defiantly wrote in a March letter, court filings show. “You cannot win because you will spend more litigating than we’re fighting over … we decide the best way to protect the funds, and your opinion is irrelevant.”
Court documents show that Christopher Paige, Paige Capital’s general counsel, wrote that letter in March, in response to the investor’s request to pull his money from the fund, to which Paige Capital responded in a lawsuit.
Randy Lerner claims in a court document that it’s the only outside investor in the funds managed by Paige Capital, which has “hidden” Lerner’s money and “steadfastly refused to disclose what they have done with” it.
The outside investor, Billionaire Randy Lerner, the owner of the Cleveland Browns and the Aston Villa Football Club, apparently has $40 million invested in Paige Capital, a small New York hedge fund.
The reason the fund is so cocksure is apparently because Lerner’s investment represents more than 20% of the assets invested in Paige Capital, and apparently Lerner agreed to a gate that does not allow more than 20% of the fund’s capital to be removed.
At Paige Capital, Lerner claims, other investors never materialised and Lerner’s investment has at all times represented 99% of the funds’ assets. Michele Paige, who once worked for billionaire investor Carl Icahn and has been a visiting lecturer at Yale Law School, is the only other investor.
Now, Lerner believes there might be some “misappropriation” of funds going on. Like lunch and dinner time feasts on his dime, perhaps?
On a lighter note, two brothers who run a hedge fund are doing well so far this year, and their shared gene pool came up with this clever name.