NYC Hedge Fund Tenor Poised for Windfall From 2012 Venezuela Bet

New York hedge fund Tenor Capital Management is set for a big payout after investing in a gold miner expropriated by Venezuela that’s now first in line for a $1.4 billion settlement.

Tenor helped finance Crystallex International Corp.’s litigation for the past decade in hopes of one day receiving an undisclosed portion of any award the Canadian gold miner won in challenging the late Hugo Chavez’s 2011 decision to revoke its license for one of the world’s largest gold deposits.

Now, a US judge has put Crystallex at the front of a long line of Venezuela’s creditors when ...