Tramita Funds, Rising Star to Final Collapse

Tramita Funds has finally closed its door for good and disappeared without a trace. If it were not for an empty website and registered domain name, one would assume the company had never existed before. Some questions on the minds of its many investors have been left unanswered. Late last year, Tramita stopped communicating to its investors and redemption requests were unfulfilled.

We tried contacting the company for some answers via phone and email to no avail. This left us wondering if Tramita was really another one of the numerous ponzi investment scams that eventually left its investors high and dry. However, doing some research we came to the conclusion that this was not the case, but the alternative scenario is of no consolation to investors.

According to Hedge Fund Research, about one in 10 hedge funds disappeared last year. Seven percent of the industry closed its doors in the first three quarters of 2008, that’s nearly 700 funds. The bleeding will not stop this year as thousands more are expected to die in 2009 as nervous investors line up for redemptions of what is left of their funds. It is our belief that Tramita Funds was one of these casualties.

The fortunate investors were the ones that were able to receive their redemptions before the global financial meltdown started to spiral out of control. Massive redemptions left many of the hedge funds clamoring to liquidate assets to fulfill these requests and eventually causing them to fail.

If this was the reason for the disappearance of Tramita, then it is understandable, however, the lack of communication or explanation to their investors is unacceptable. While we subscribe to laissez faire when it comes to government intervention in regards to private investments, this may be the one time where transparency should be inforced.

We can not confirm this story to be factual or not, but thought it may be interesting to know that talk show celebrity Larry King may have had funds invested in Tramita as well. Read story here.

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