Art Institute Sues Hedge Fund For Losses

December 12, 2001 ( - The Art Institute of Chicago has filed suit in Texas court against Integral Investment Management, claiming the hedge fund firm lost $43 million of the Art Institute?s $667 million in assets through risky investments.

In a lawsuit filed in Dallas on Monday, the institution also disclosed that agents of the Federal Bureau of Investigation had visited the Art Institute about a month ago seeking records and other information about its investments with the trading firm, according to the Chicago Tribune.

As much as $43 million in museum endowment funds placed with the firm appear to be at risk, the Art Institute said. One fund containing $23 million from the museum is said to have lost as much as 90 percent of its value, according to the complaint.

Additionally, the suit claims that executives with Integral Investment Management have refused to answer questions about the status of the funds.

The lawsuit charges that Integral Investment executives deceived Art Institute officials about the safety of the fund’s trading strategies and put most of the money in risky investments.

A lawyer for the investment firm said the Art Institute’s money was invested according to an agreement between the parties, according to the Associated Press.