Harley International Fund Said to Have Invested With Madoff

Harley International Fund Said to Have Invested With Madoff


Jan. 5 (Bloomberg) -- Harley International Ltd., a hedge fund run by Cayman Island-based Euro-Dutch Management Ltd., invested all its assets with Bernard Madoff, the financier arrested last month in an alleged $50 billion fraud, a person familiar with the matter said.

The fund managed $2.76 billion as of Oct. 31 and returned an average of 10.9 percent annually since April 1996, according to a monthly update sent to investors. Jamie Moss, a New York- based spokeswoman for the fund, declined to comment.

Madoff, 70, was arrested in New York last month after confessing to employees that his investment company was “a giant Ponzi scheme,” according to an FBI complaint. Investment firms including Tremont Group Holdings Inc. and Fairfield Greenwich Group also set up hedge funds whose assets were overseen by Madoff.

Euro-Dutch’s directors are Anthony L.M. Inder Rieden and Dawn Davies, according to the firm’s 2007 financial statement. Rieden is a former director and Davies a retired deputy managing director of Fortis Fund Services. Fortis Prime Fund Solutions Ltd. is the administrator of Harley International, the report to investors shows.

Fix Asset Management, which has managed portfolios since 1984, provides research and data services to Euro-Dutch, according to the person, who asked not to be identified because the firm is private.

Fix Asset Management “is shocked by Madoff’s complex scheme,” the company’s Web site said. “In the wake of this collapse, the affected funds serviced by FAM are committed to aggressively pursue the recovery of all assets related to Bernard L. Madoff Investment Securities.”

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