Kenneth Lipper Shutters Mutual Fund Business

December 19, 2002 ( - Kenneth Lipper's Lipper & Co has applied to the Securities and Exchange Commission (SEC) for deregistration of the firm's three mutual funds.

The letter to the SEC called for the deregistration of the Lipper High Income Bond Fund, Lipper European Equity Fund and Lipper US Equity Fund.   Lipper said the average investor would receive 83% of their original investment under the proposed distribution plan.

The move by Kenneth Lipper & Co (unrelated to   fund research company Lipper Inc.),  officially brings to a close the firm’s run in the mutual fund business, which in April saw $500 million in bond fund acquired by Neuberger Berman and the subsequent close of an additional two stock funds.   

Neuberger also brought on five members of the Lipper’s management team, including Daniella Lipper Coules, Lipper’s daughter.

However, still in dispute is the $386 million convertible arbitrage hedge fund’s assets, which was liquidated after it was discovered the sparsely traded securities in the portfolios had been mispriced, leading the firm to miscalculate their value by more than $300 million.