Hedge Fund Roiled by Manager’s Death Placed in Receivership (1)

An Ontario court placed Traynor Ridge Capital Inc. into receivership after the sudden death of its founder as regulators probe potentially tens of millions of dollars in trading losses.

The regulator filed an application with the Ontario Superior Court of Justice in Toronto on Friday, asking the court to name Ernst & Young as the receiver and manager of all of Traynor’s assets.

Christopher Callahan, who was the sole director, officer and shareholder of Traynor, was reported dead to the regulator on Oct. 28. The OSC has issued a temporary cease-trade order.

Market maker Virtu Financial Inc. filed a separate ...