"The fund's performance always looked good on paper until someone wanted to redeem," said one investor in the Sagecrest II hedge fund in a recent email to The New York Post. "Then you're told there isn't enough cash and the 'value' assigned to the fund is difficult to determine".
How would you like that as a testimonial to your firm's ability to make money?
Sagecrest II promised investors lofty returns backed by art, real estate and "structured settlement loans" and then ran into liquidity problems which it blames on the Deutsche Bank nut vice. Deutsche Bank is a major participant in the financing behind structured settlement factoring deals.
We certainly know that the structured settlement (payment rights) assets aren't what is giving Sagecrest trouble. The factoring industry has been making bloated returns at the expense of tort victims' conservative long term security for some time. John Calamari, CFO of JG Wentworth has stated "It (structured settlement) is the perfect product for pensions, insurance companies and big banks." See "Squidward on Securitizations of Structured Settlements"
Sagecrest II, LLC,a hedge fund founded by Philip and Allan Milton, filed for Chapter 11 bankruptcy protection on August 17, 2008.
The bankruptcy case is SageCrest II LLC, 08-50755, U.S. Bankruptcy Court, District of Connecticut (Bridgeport). The Windmill lawsuit is In re Wood Creek Capital M v. SageCrest II LLC, 08-50075, Superior Court, Stamford, Connecticut.
"Govern well thy appetite, lest Sin Surprise thee, and her black attendant Death" John Milton