A federal court-appointed receiver for troubled U.S. hedge fund manager Platinum Partners has hinted that some clients may yet recover much of their assets, Reuters reported yesterday. "Though we have just initiated our review, thus far we have not observed a major shift in overall portfolio value," Bart Schwartz, chairman of Guidepost Solutions, wrote in a message posted to platinumpartnersreceiver.com last week. Guidepost is working to liquidate Platinum's investments in hard-to-sell private energy, mining and other companies after six top executives of the firm, including founder Mark Nordlicht and President Uri Landesman, were charged in December with running a $1 billion fraud. All six have pleaded not guilty. Platinum executives reported to Guidepost in September that two funds, Platinum Partners Credit Opportunities funds and the Platinum Partners Liquid Opportunity funds, had assets of $520 million and $16 million respectively, according to Schwartz's note. The new message from Schwartz said that Guidepost continues to work with a valuation expert to assess those assets, a process that will continue for several months. Read more.
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