Meredith Whitney’s hedge fund is being sued by its biggest investor, a fund connected to billionaire Michael Platt’s BlueCrest Capital Management, as demands to recoup money spill into court, according to people with knowledge of the dispute.
Bloomberg News reports that Platt’s BlueCrest Capital Opportunities brought the lawsuit in Bermuda last week, seeking to get back its $46 million stake in Whitney’s American Revival Fund, the people said, asking for anonymity because the case isn’t public.
Her hedge fund slid 11 percent this year through November despite a rising stock market.
The suit shows how quickly relations have soured since last year, when Platt helped Whitney, once one of Wall Street’s most famous analysts, start her new firm, Kenbelle Capital. The BlueCrest fund invested $50 million that November, then asked to redeem this October, expecting payment around the end of last month, the people said.
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