ETF Trends
ETF Trends

Cedar Capital’s Broadmeadow Capital unit will acquire assets from exchange traded funds strategist F-Squared, which voluntarily filed for Chapter 11 bankruptcy protection today in Delaware.

According to a statement, Chicago-based Broadmeadow Capital said “it has signed an agreement to acquire the intellectual property, investment strategies and investment management contracts of F-Squared Investments.”

In December, F-Squared agreed to pay $35 million and admit wrongdoing to settle charges it falsely advertised historical returns for the firm’s flagship ETF strategy, the Securities and Exchange Commission said.

“The SEC separately charged the firm’s co-founder and former CEO Howard Present with making false and misleading statements to investors as the public face of F-Squared,” said the Commission in a statement. [Changes at the Top at F-Squared]

In November, Present left the firm and was replaced by Laura Dagan. In May, Virtus Investment Partners (NasdaqGS: VRTS) said it replaced F-Squared as a subadviser on five AlphaSector mutual funds. In April, it was reported that F-Squared is looking for a buyer or a strategic partner, which could help with the firm’s rebranding efforts, particularly if a buyer opts for a majority stake of the strategist. [F-Squared Reportedly Looking for a Buyer]

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