Fla. Charities Lose Money Invested With Hedge-Fund Manager
January 19, 2009 | Read Time: 1 minute
The disappearance of a money manager in Sarasota, Fla., raises questions for local charities that invested money with him, the Herald Tribune reports.
Art Nadel, who with two other people ran Scoop Management, a hedge fund, disappeared last week and left behind what might have been a suicide note. Federal authorities are investigating the possibility that the hedge fund has collapsed.
Several charities, including the YMCA in Sarasota and the Sarasota Ballet, said that Mr. Nadel’s partner, Neil Moody, made donations to their organizations on the condition that the groups keep their endowments invested with Scoop Management, the newspaper reported.
The Y lost $1.2-million, or 13 percent of its assets, by investing with Scoop. The chairman of the ballet’s board said $100,000 that Mr. Moody donated is now gone.
“This is going to prompt any nonprofit to look at all of its investments and do a head-to-toe look at what’s going on and where everything is,” Chris Pfahler, president of the ballet’s board said. “I think everybody is going to be doing that now.”
Mr. Moody was not quoted in the article.
