NEW YORK, Oct. 3, 2013 /PRNewswire/ -- ThinkStrategy Capital Management and Chetan Kapur managed and advised two leading hedge funds – ThinkStrategy Capital Fund, an equity market-neutral fund and TS Multi-Strategy Fund, a leveraged multi-strategy fund of hedge funds (FOF). The funds provided investors solid annual returns with low relative volatility for the majority of a decade. All investors received the reported returns that were based on the net asset values (NAVs) generated from the funds' trading or allocations. With the financial and banking crisis, the leveraged TS Multi-Strategy Fund, a leading performer, was put into liquidation by its lender and custodian, KBC Financial in 2008 (which put all their leveraged clients into liquidation). ThinkStrategy Capital eventually put the TS Multi-Strategy Fund into the hands of PriceWaterhouse Coopers which is overseeing & managing the KBC/Fund liquidation process.
ThinkStrategy Capital had quality independent service providers that audited and administered the Company's funds and returns. The fund's custody, leverage, liquidation, legal and other service providers were also quality independent firms. The service providers included PriceWaterhouse Coopers, KBC Financial, O'Connor Davies Munns and Dobbins, Eisner, Folio Administrators and Kirkpatrick & Lockhart.
One year after Chetan Kapur wound down operations and voluntarily decided to move into another field the SEC brought claims against ThinkStrategy Capital and its founder. Mr. Kapur settled the matter with the SEC entirely on their terms as he was not able to incur the substantive cost nor did he want to spend several years in court process to vindicate himself, and in doing so not move forward with his new endeavors. However, had he chosen this route it would have made it unnecessary for him to volunteer a bar and default penalties.
The TS Multi-Strategy Fund, a top performer, was one of KBC Financial's last clients to be put into liquidation as it was well diversified across the full alternative universe in accordance with its mandate. The leveraged fund of hedge funds submitted full control over to KBC Financial's liquidation process and the worst financial crisis since 1929. Nonetheless, the fund outperformed a vast majority of its peers locked in a similar position in spite of coming to discover and fully writing off a few issue investments. TS Multi-Strategy Fund enjoyed an investment success and outperformance rate higher than its peers. The fund had over 150+ different investment tranches. TS Multi-Strategy Fund continually improved its above or at industry standard due diligence process eventually adopting a 'No Stone Should Be Left Unturned' policy.
ThinkStrategy worked very diligently 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 infrastructure and operating expenses of the fund and firm until resources were fully depleted. Most other investment managers would have forced their funds into court receivership or the hands of a liquidator immediately whereby all these expenses/costs would be charged to the fund - thereby hurting investor returns. ThinkStrategy did not abandon investors which they were legally entitled to do as they were working gratis. Investors benefitted at the cost and expense of the Investment Manager.
ThinkStrategy during this liquidation period devoted a lot of hard work and effort in providing detailed reports to investors, in procuring the sub-funds to payout as soon as feasible (including joining investor committees and appointing advisors to oversee payouts), in obtaining risk/liquidity/outlook updates from sub-funds, as well as maintained coordination with all service providers to the fund (the independent auditors, the independent administrators, the independent accountants & tax preparers, & independent legal) while the company received no compensation for its diligence. Further, the fund's investors were provided substantial fee discounts in the normal course of business prior to the financial crisis - once again benefitting investors at the cost of the Investment Manager.
ThinkStrategy eventually put the Multi-Strategy Fund of Hedge Funds into the hands of PriceWaterhouse Coopers after 3 long years of managing all aspects & costs of the funds without pay, having done all it could for investors and depleting resources fully. ThinkStrategy suffered the exact same percentage loss during the financial and banking crisis being an investor in the fund that was put into liquidation, and had a very substantial creditor claim towards the fund that remains unpaid. ThinkStrategy empathizes with investors and is very upset about the losses which were experienced as a result of the worst U.S. financial crisis since 1929 & the worst US banking crisis ever.
ThinkStrategy Capital always had a Director of Marketing/Business Development that fully managed and spearheaded the firm's capital raising, sales and investor relations effort. The Director of Marketing/Business Development created all marketing materials and was responsible for all investor needs as it related to the funds' performance, AUM, longevity, strategy and due diligence. In addition, other senior members spearheaded research, trading and other functional areas of the firm. ThinkStrategy was a growing firm managed in a similar fashion to many growing hedge funds of its size.
ThinkStrategy Capital Management was an honest, hardworking organization that went above and beyond for investors during the Great Recession (and its aftermath) and prior.
Case: U.S. v. Kapur, 12-cr-00535, U.S. District Court, Southern District of New York (Manhattan).
SOURCE ThinkStrategy Capital Management LLC