The Securities and Exchange Commission is investigating a Los Angeles money manager over accusations of improper trading practices, the New York Times DealBook blog reported yesterday. The news of the investigation of Peter J. Eichler Jr., the money manager, came as his firm, Aletheia Research and Management, filed for chapter 11 protection on Sunday after a wave of client withdrawals amid weak performance and regulatory issues. Aletheia, which at its peak managed about $8 billion, has drawn attention for its role in a number of shareholder fights, including a prominent battle with Barnes & Noble that it waged alongside the billionaire investor Ronald W. Burkle. The firm primarily manages stock portfolios for pension funds, foundations and wealthy families. Its strong investment performance -- Aletheia's flagship growth strategy has substantially outperformed the Standard & Poor's 500-stock index over the lpast decade -- has attracted marquee clients including Michigan's state pension fund and the Ewing Marion Kauffman Foundation in Kansas City, Mo. The brokerage units of Goldman Sachs and Morgan Stanley have also invested clients' money in Aletheia's funds.
