Ernst & Young (EY), the receiver for failed Canadian hedge fund Traynor Ridge Capital Inc has said that efforts to wind don the company have so far found only $3m in cash, a fraction of the $94m in assets the firm held in its investment funds as of the end of September, according to a report by the Globe and Mail.
The Ontario Securities Commission issued a cease trade order (CTO) on Traynor Ridge Capital’s registration as a portfolio manager and investment fund manager on 30 October following the sudden death of founder and the firm’s sole director, officer and shareholder, Chris Callahan.
In a bid to recover additional money, Ernst & Young has nominated ATB Capital Markets Inc to value and sell the firm’s remaining assets, most of which are in the form of private company stock and other illiquid assets.
ATB has significant experience as an equity trader of Canadian cannabis securities, which “comprise a substantial portion” of Traynor’s investment portfolio, according to EY.
