Mutual Fund Locks Out Founder After SEC Questions Swaps Pricing
- Infinity Q plans to shut $1.8 billion Diversified Alpha Fund
- Firm placed James Velissaris on leave after agency reached out
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By 30, James Velissaris was the founder, majority owner and chief investment officer of his own innovative mutual fund company, set up with backing from billionaire investing titan David Bonderman. This week, Velissaris was abruptly locked out.
In a dramatic response to a federal inquiry, Infinity Q Capital Management announced Monday it’s shutting a $1.8 billion mutual fund and that it placed Velissaris on leave, cutting off his access to accounts and trading while hiring an expert to value holdings. The firm said it had learned the U.S. Securities and Exchange Commission is probing whether Velissaris, now 36, incorrectly valued complex derivatives.