Hedge Fund Patrol trading suspended

Hedge Fund Patrol has been suspended from trading on the Unlisted trading platform - less than two days after its debut and before any shares changed hands.

Unlisted manager Bruce Cossill said the decision was made due to concern about potential confusion created by information provided by Hedge Fund Patrol and possible "consequences should its securities be bought by people other than professional investors".

Hedge Fund Patrol shares were quoted for sale on Unlisted on Monday - as part of Australian businessman Stephen Matthews' plans to launch a US$100 million ($140 million) global hedge fund from New Zealand. The shares were only available to "professional investors" as a registered prospectus and investment statement were not provided.

Cossill said doubts about the clarity of who could buy the shares and the information they had led him to refer the matter to the Securities Commission. He was confident the issues would be worked through with the commission and Matthews.

Commission chairman Jane Diplock declined to comment.

Speaking from Sydney, Matthews said he was confident the regulatory hurdles could be sorted out.

It also emerged that Matthews has twice been in trouble with Australian regulators.

The Australian Securities and Investments Commission brought charges against him in May 2001 over advice he posted on the website The Chimes. He was found guilty of contempt of court and received a 12 month suspended jail sentence and two-year good behaviour bond.

In May 2000, Matthews was jailed for three months for contempt of court relating to earlier postings on The Chimes.

Neither conviction involves fraudulent activities.

Matthews said New Zealand's more relaxed regulations attracted him to the Unlisted market.