Infinity Q to shut US$1.8bil fund amid SEC probe

NEW YORK: Infinity Q Capital Management is shutting a US$1.8bil mutual fund after learning that the US Securities and Exchange Commission is investigating whether the firm’s chief investment officer incorrectly valued complex derivatives.

James Velissaris, the chief investment officer and majority owner of the firm, has been placed on administrative leave, Infinity Q said in a statement on Monday. The SEC informed the company that investigators obtained evidence that Velissaris adjusted models used to price swap contracts held by the Infinity Q Diversified Alpha Fund, likely resulting in incorrect valuations being reported to investors, according to the statement.