R. G. Niederhoffer Capital Management – Investigation Over Fund Losses Since 2009
Zamansky LLC is investigating R. G. Capital Management Inc., the investment advisor and hedge fund manager founded by Roy Niederhoffer (“Niederhoffer”). Niederhoffer is a well-known hedge fund manager and patron of the arts who, in 2008, became a star for posting outsized returns while the stock market tanked. He manages several hedge funds named Diversified, Alpha, Correlation, Negative Correlation, Optimal Alpha and Trendhedge.
Since 2009, Niederhoffer’s funds have lost 60% or over $1 billion of investor funds. Niederhoffer’s trading relied on predictions based on “computational neuroscience,” or the study of how a brain makes decisions. Niederhoffer would use this “pseudo-science” to make predictions on short-term human reactions by investors to events. Unfortunately, this has not gone well for Niederhoffer for the last four years as investors have suffered losses, and withdrawn funds, leaving his firm with less than $500 million under management.
Zamansky LLC is investigating Niederhoffer over his performance and the risk disclosures provided to investors. If you were an investor in any of the Niederhoffer funds, and wish an evaluation of your situation, please contact Jake Zamansky at 212 742-1414, or jake@zmansky.com.