Author: Bruce Cameron
Date Published: 05 August 2012
The shock waves from the shooting and suicide involving two dodgy asset managers in Cape Town last week are reverberating widely, with indications that investors in a “hedge fund” could face losses of almost R2 billion.
The high drama surrounding the Relative Value Arbitrage Fund (RVAF) started when the person who ran the fund, Herman Pretorius, was visited by inspectors from the Financial Services Board (FSB), whereupon he went to see his business associate, Julian Williams. During an altercation, Pretorius apparently shot Williams twice before turning the gun on himself.