24/02/2010 Author: Elana Margulies

Paradigm Global FoHF downsizes office space

Paradigm Global Advisors, one of the oldest fund of hedge funds (FoHF) managers, founded in 1989 by Dr James Park, has downsized its operations moving from midtown Manhattan to a smaller office space in Westchester after a tough couple of years left the FoHF well below its all time AuM high.

Marc LoPresti, of Tagaliaferro & LoPresti, which is counsel to Paradigm, said the manager has cut back its office space, in line with much of the FoHF industry, due to  investor redemptions.

“Paradigm’s move to new offices was appropriate given the scale of its operations by the end of 2009,” he said.
At the end of last year, Paradigm’s assets under management had shrunk to $150m – at its height the firm had hit $1.8bn under management .

Last month, Seth Moskowitz, vice president of investor relations, departed Paradigm after joining in May 2004. However, he is still consulting for the firm.

Paradigm, which is owned by a holding company run by US Vice President Joe Biden's son, Hunter, and brother James, was beset with problems by association during 2009. It co-branded a fund with Texas financier R Allen Stanford, who was charged with fraud by the US Securities and Exchange Commission (SEC).

Companies owned by Stanford marketed the $50m fund, known as the Paradigm Stanford Capital Management Core Alternative Fund. Following the SEC's charges against Stanford, Paradigm terminated its relationship with Stanford's
companies.

Paradigm also sublet some of its office space in Manhattan to Ponta Negra Group, which was subsequently charged with fraud by the SEC.