Hedge Fund Files for Bankruptcy
4.7.12, STEVE EDER, JOSH BARBANEL
A hedge fund managed by the investment firm of Alphonse “Buddy” Fletcher Jr. has filed for bankruptcy protection in Manhattan, as the firm faces a mounting legal challenge.
The Chapter 11 filing comes after a Cayman Islands judge in April appointed liquidators from Ernst & Young to wind up another fund run by New York-based Fletcher Asset Management.
The litigation represents a reversal of fortune for the Fletcher firm. In the early 1990s, Mr. Fletcher made a splash on Wall Street, reporting 300%-a-year returns at his firm. In 2003, he was profiled in the book “Stock Market Wizards.”