Morgan Stanley Sues Peak Ridge Over Losses

Morgan Stanley is suing private equity and investment firm Peak Ridge Capital, alleging the firm failed to cover more than $40 million in losses from its commodities hedge fund, Reuters reported. Morgan Stanly contends that suffered the losses due to bad bets Peak Ridge placed on natural gas, and that the firm did not maintain proper margin requirements. Peak Ridge and the fund in question – Peak Ridge Commodities Volatility Fund Series – are both operated by Boston-based private equity firm Avolte, Reuters reported.

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