Millinium Capital Managers has made a claim worth $2.4 million against a former adviser of the Millinium Alternative Fund (MAX) for misconduct.
According to a filing on the Australian Stock Exchange today, the claim follows an investigation by the company into its MAX fund.
It alleges the former adviser recommended the fund sell certain shares it owned in a listed company, despite the adviser being in possession of material information about said company. If this information had been disclosed, it would have led to MAX retaining its shares, which had since increased in price.
If the shares had not been sold, MAX would have been $1.6 million better off, the company said.
The firm was also seeking $793,000 in expenses paid or incurred to the adviser, his company or other representations.
It said the $2.4 million sum was ‘material’ when compared to MAX’s net tangible assets.