F-Squared Investments has filed for bankruptcy and agreed to sell its intellectual property, investment strategies and investment management contracts.
Broadmeadow Capital, a subsidiary of Cedar Capital, said on Wednesday it has signed an agreement to acquire F-Squared Investments’ contracts. The investment firm’s voluntary petition under Chapter 11 of the U.S. Bankruptcy Code was filed on Wednesday in the U.S. Bankruptcy Court for the District of Delaware.
Late in 2014, F-Squared was hit with a $35 million penalty by the Securities and Exchange Commission.
Broadmeadow Capital President David Cabot called the acquisition a timely opportunity to expand Broadmeadow’s product portfolio. “We see merit in the AlphaSector investment strategies and methodologies, despite how their performance track record prior to 2009 was portrayed to investors,” he said in a statement. “We look forward to providing continuity and stability to investors in these strategies.”
Broadmeadow Capital, a Boston-based affiliate of Cedar Capital, is an investment firm providing alternative investment strategies to individual and institutional investors.