Hedge Fund Sued for Self-Dealing, Ditching ‘Market Cliff’ Plan

Ark Strategic Investments LP, a small hedge fund, was hit with a Delaware lawsuit claiming it abandoned its strategy of conserving capital during boom times to snap up distressed assets after a “market cliff” in favor of a self-dealing software acquisition.

In addition to Ark, the suit targets its principals, Robert and John Wiedemer and Cindy Spitzer, co-authors of “America’s Bubble Economy” and several other books arguing that the U.S. economy is artificially inflated by unsustainable debt.

The strategy was supposed to involve investing initially in assets juiced by “misguided monetary policies,” then moving toward foreign holdings of precious metals, ...