“There are a limited number of accounts, mostly sub-advisory, in which others participated in the investment decision-making process that had allocations to Madoff,” he said. “In the past, certain Ivy HFoFs had some investments with Madoff, but no portion of Ivy’s HFoFs were invested with Madoff since 2000.” Sub-advised funds are usually managed by a firm on behalf of another funds management business, which has the relationship with clients. However Brookes denied that Ivy, as a sub-advisor, recommended or placed investment with Madoff.

Due to its investments in Madoff, Beacon Associates is reportedly facing lawsuits from the Grand Metro Builders of New York Corporation pension fund and two unions, the International Brotherhood of Electrical Workers Local 43 in Syracuse and the Oswego County Laborers’ Local 214. The plaintiffs have also levelled allegations at Ivy. Earlier this year, the manager shed 30 per cent of its staff “to maintain profitability with a lower asset base,” Balfour said. But despite the layoffs, the business staffs enough resources to meet clients’ demands, he said.

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