Eccleston Law has launched an investigation into S4 Capital, L.L.C. (formerly known as Chicago Analytic Capital Management, LLC and Valence Capital Group, LLC) and one of its traders and fund managers, Sharath M. Sury.
Sury was a trader for S4 Capital who managed the CACM Hedge Equity Fund, L.P., which was an unregistered hedge fund. As the fund manager, Sury engaged in undisclosed and unhedged investments in the fund, including purchasing unhedged Google options using leverage.
Sury’s unhedged trading caused substantial losses in the fund, which he failed to disclose to investors. In fact, Sury misled investors by sending emails indicating that the fund was profitable when in fact it was suffering mounting losses. Furthermore, the risky trading was contrary to both the investment strategy described in the hedge fund’s private placement memorandum and to investors stated investment objectives, which was to participate in the equity markets while minimizing downside risk.
As a result Sury’s high risk trading activity, the CACM Hedged Equity Fund, L.P. lost all of its assets, more than $12 million, in less than three months.
If you have suffered a loss in a hedge fund or have information about Sharath M. Sury, S4 Capital L.L.C. or the CACM Hedged Equity Fund, L.P., please contact Jim Eccleston at the Eccleston Law Offices at 312-332-0000.