Toru Ueda, co-founder of hedge-fund firm Hachiman Capital Management, sued his former partner Yashwant Bajaj, claiming he was shortchanged after the two decided to shut the company.
Bajaj transferred $458,965 from Hachiman to his Juggernaut Capital Management Pte without Ueda’s consent, according to Ueda’s lawsuit filed at the Singapore High Court last month. Bajaj also incurred a trading loss of $247,197, which wasn’t accounted for, Ueda said in his complaint.
The two men had an agreement preventing them from withdrawing more than their stakes in the company that they founded in 2004, according to the complaint. The duo decided to part ways in September 2010 and agreed that from March 29, 2011 each would be responsible for any losses from their individual investments and not the company, Ueda said in the lawsuit.
“The claims against me are wholly without basis,” Bajaj, who hasn’t filed his defense, said in court papers. Bajaj, a former Lehman Brothers Holdings Inc. managing director, declined to comment on the lawsuit. A closed hearing is scheduled for today.
Total assets under management for Asian hedge funds fell 7.8 percent to $135.5 billion in 2012, underscoring the challenges in raising capital, according to Singapore-based GFIA Pte, which advises on hedge-fund investments.
Ueda, now a senior adviser with Tokyo-based HFC Advisory Group, is seeking at least $365,400 compensation from Bajaj.
The case is Toru Ueda v Yashwant Bajaj. S205/2013. Singapore High Court.
To contact the reporter on this story: Andrea Tan in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Douglas Wong at email@example.com