Firm Says Elliott Push to Liquidate Oil Fund Will Hurt Investors

A Texas private equity firm told a judge that Paul Singer’s Elliott Investment Management would hurt 100 other investors if an oil and gas fund was forced to liquidate assets now as part of a legal dispute over expenses.

Stronghold Investment Management urged a Delaware Chancery Court judge to deny Elliott’s demand to wind down two partnerships known as Fund II, according to a court filing. The Texas firm said it would have to sell the assets at a discount — breaching its fiduciary duties — to satisfy “Elliott’s desire for short-term liquidity.”

The investments in companies that buy ...