Refco Unit Warns Sphinx Investors Of Losses

Law360, New York (July 6, 2006, 12:00 AM EDT) -- A Refco Inc. unit has alerted investors in four Sphinx funds it operates that they will likely win back no more than 20 cents of every dollar they put into the funds after a $263 million settlement with Refco’s creditors sapped finances at Sphinx Managed Futures Fund.

RefcoFund Holdings LLC placed some of its investors’ funds into SMFF, which consists of hedge funds that once boasted $1 billion in assets under management.

Richard C. Butt, president of the Refco unit, said Wednesday that he sent letters...
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