Formerly Jailed Hedge Fund Manager Just Really Needs Everyone To Know That Lots And Lots Of People Like Him And Think He’s Probably Not A CrookBy Jon Shazar
Hot on the heels of Highland Capital Management founder James Dondero’s gloriously apropos of nothing press release slamming both his soon-to-be-ex-wife and his hated ex-partner comes another strong contender for the coveted DealBreaker Press Release of the Year Award.
Chetan Kapur used to manage a hedge fund. Certain authorities thought he didn’t do such a good job of it, what with investing in the Bayou, Nadel and Grieve Ponzi shcemes, and the defrauding investors by lying to them. The only problem was, they could never quite muster enough evidence to make all of those allegations stick, so after keeping Kapur in jail for a year, they settled for his pleading guilty to failure to keep adequate records and accepting a $5 million fine, and let him go.
Kapur got out of jail in August, and has apparently spent the ensuing three months crafting a gem of a press missive, laying out his side of the story. Far from being in over his head managing a hedge fund, he was great at it—until he and everyone else weren’t anymore.
TS Multi-Strategy Fund enjoyed an outperformance and investment success rate higher than its peers. The fund outperformed a vast majority of its peers pre, post and during the crisis. The fund had over 150+ different investment tranches. TS Multi-Strategy Fund continually improved its above or at industry standard due diligence process eventually implementing a ‘No Stone Should Be Left Unturned’ policy….
ThinkStrategy Capital worked assiduously for investors of the leveraged fund of funds even while receiving no compensation or fees for approx 3 years as KBC Financial (lender and custodian that put all their clients into liquidation) halted all required fees payable to the investment managers during the liquidation period. ThinkStrategy thereafter went out-of-pocket during these 3 years to pay for the entire operating and infrastructure expenses of the fund and firm until resources were fully exhausted. Most other investment managers would have forced their funds into the hands of a liquidator or court receiver immediately whereby all these expenses/costs would be charged to the fund – thereby negatively impacting investor returns. ThinkStrategy did not forsake investors which they were legally entitled to do as they were working gratis.
Luckily, while the SEC and federal prosecutors did not appreciate this sacrifice, it has not gone unnoticed, even if those doing the noticing have gone unthanked herein.
A voluminous amount of letters have been written by industry participants, business associates, hedge fund associations, friends and family on behalf of Mr. Chetan Kapur highlighting his honesty, integrity, candor, professionalism, moral fiber, and noting his impeccable character, excellent reputation and outstanding contribution to the hedge fund community.