Pitt, Carnegie Mellon suing investment manager
They want $114 million back after questions were raised by audit
Saturday, February 21, 2009
By Len Boselovic and Jonathan D. Silver, Pittsburgh Post-Gazette
The University of Pittsburgh and Carnegie Mellon University yesterday filed suit against Westridge Capital Management and its operators, seeking the immediate return of more than $114 million they invested. They also asked a federal judge to appoint a receiver to oversee the investment manager.
The lawsuit, filed in U.S. District Court, comes after the two universities said they were unable to collect the money from Westridge or get documentation regarding the status of their money from Westridge's principal partners, Paul Greenwood and Stephen Walsh.
The schools put their money into Westridge Capital Management Enhancement Funds, a Virgin Islands fund that invested in commodities.
The complaint described them as "enhanced index" funds.
Managers of such funds try to outperform a market index by investing a minimal amount of money in a market index and investing the majority of the funds into other investments that provide returns above those provided by the market index. The promise of market-beating returns made it a popular strategy in recent years for endowments, pension funds and other large investors.
