(March 7, 2005) Portus investors might have an easier time getting information about the company and their investments after the troubled hedge fund firm was put into receivership late Friday afternoon.

Since the Ontario Securities Commission first issued a temporary order against Portus in February, preventing it from opening new accounts or accepting new funds from any existing clients, some clients referred to the company have had difficulty getting their questions answered or their calls returned by the company, or investment advisors who referred them in the first place.

Portus laid off most of its staff last month and reports suggest the company is no longer operating “in any meaningful way.” “The appointment of a receiver provides a timely and efficient process to respond to Portus investors’ questions and concerns,” Kelley McKinnon, Manager of Litigation at the OSC said in a statement last week.

KPMG, the receiver appointed by the Ontario Superior Court, announced a toll free helpline number today for Portus investors: 1-866-260-5439. The call centre will be staffed by customer service representatives during normal business hours across Canada, KPMG says.

Under the court order, KPMG also takes control of all Portus’s assets and property, and has the liberty to take inventory and engage professional advisors as necessary to conduct business and report back to the courts by March 19.

The receiver is also authorized, but not obligated to meet with and discuss with the OSC and other regulatory bodies and their advisors to share information if KPMG deems it appropriate. An OSC hearing on Portus is scheduled for May 17.

Portus staff was ordered to turn over any property and provide account numbers and names under which property may be held by third parties, as well as any books, documents, securities, contracts or orders, corporate and accounting records, and computer and digital records, some of which were rumoured to be destroyed by Portus employees before the firm closed up shop.

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    • The court order also says Internet Service Providers (ISP) and any other person or firm providing e-mail, web services, FTP or file transfer protocol, internet connections or similar services to the hedge fund company, must turn over all documents, server and archive files and any other information, recorded messages or e-mail correspondence sent or received by directors, officers and employees or agents in their course of their association with Portus.

    Filed by Kate McCaffery Advisor.ca, kate.mccaffery@advisor.rogers.com

    (03/07/05)