Headstart Advisers, an FSA-regulated hedge fund adviser, and Najy Nasser, its chief investment officer, have settled their dispute with the US Securities and Exchange Commission relatin
Headstart Advisers, an FSA-regulated hedge fund adviser, and Najy Nasser, its chief investment officer, have settled their dispute with the US Securities and Exchange Commission relating to Headstart’s historic involvement in market-timing from which it disengaged in September 2003.
This will allow Headstart to concentrate on its core business as an investment adviser to offshore hedge funds and expand the business with the launch of new funds.
Without admitting or denying the allegations, the civil settlement includes payments of USD17m by the defunct Headstart Fund (domiciled in the Bahamas), USD200,000 by Headstart Advisers and USD600,000 by Nasser.
Nasser says: ‘Headstart is very pleased to have reached a settlement. We responded to US concerns about market timing and immediately ceased this element of Headstart’s business in September 2003. We have since worked hard to build up Headstart’s funds using different strategies. As we equalled or bettered our overall returns against our benchmark, we are especially pleased with what we have achieved.
‘We have superb long-term performance against both the market and our peer group and have some interesting plans to grow Headstart’s investment business.’