Key Takeaways
- • Marble Ridge Capital LP is shutting down following a U.S. Department of Justice investigation that found managing partner Dan Kamensky engaged in misconduct by attempting to interfere with Neiman Marcus Group's bankruptcy asset auction process.
- • The hedge fund, founded in 2015 by Kamensky (a former Paulson & Co. partner and former bankruptcy attorney), positioned itself as Neiman Marcus's largest single unsecured creditor at the time of the retailer's bankruptcy filing.
- • Kamensky allegedly lobbied to prevent competing bidders from acquiring certain Neiman Marcus assets, including the retailer's online unit, triggering the U.S. Trustee's formal investigation and findings of misconduct.
- • Marble Ridge will commence an orderly wind-down and return capital to investors, with the firm stating it will "manage the liquidation in the best interests of our investors and with the objective of protecting and enhancing the value of the funds' assets."
- • The firm's closure marks a significant reputational failure for a specialized distressed debt hedge fund that had publicly challenged Neiman Marcus prior to its bankruptcy filing.
Summary
Marble Ridge Capital LP announced it will wind down operations and return capital to investors following a damaging U.S. Department of Justice investigation into the conduct of its managing partner, Dan Kamensky. The hedge fund made the announcement late Thursday in a statement to investors, citing "the operating environment" as context for the decision to commence an orderly liquidation.
The shutdown comes directly after a U.S. Trustee report—filed in bankruptcy court that same day—detailed Kamensky's efforts to interfere with Neiman Marcus Group's auction of assets during its bankruptcy proceedings. Specifically, the trustee accused Kamensky of misconduct for attempting to block competing bidders from acquiring portions of the luxury retailer's assets. This alleged interference with the bankruptcy auction process triggered formal government scrutiny and invalidated the firm's investment thesis in Neiman Marcus.
Marble Ridge, founded in 2015, specialized in distressed debt investments and restructuring opportunities. Kamensky, a former partner at prominent hedge fund Paulson & Co., brought deep bankruptcy expertise to the role, having worked earlier in his career as a bankruptcy attorney. The firm had positioned itself as Neiman Marcus's largest single unsecured creditor as of the retailer's bankruptcy date, according to the trustee's report—a position that gave Kamensky both financial interest and influence in the bankruptcy process.
The hedge fund had been an aggressive and public critic of Neiman Marcus long before the retailer entered bankruptcy, establishing a contentious relationship that likely motivated Kamensky's subsequent attempts to shape the asset sale outcome. The firm told investors it would "manage the liquidation in the best interests of our investors and with the objective of protecting and enhancing the value of the funds' assets," though the exact timeline and recovery rates remain unclear.
The closure represents a stark reversal for a specialized distressed debt manager whose expertise and insider knowledge of bankruptcy processes—traditionally a competitive advantage—became a liability when that knowledge was deployed to manipulate creditor auctions rather than maximize recoveries through legitimate means.
The shutdown comes directly after a U.S. Trustee report—filed in bankruptcy court that same day—detailed Kamensky's efforts to interfere with Neiman Marcus Group's auction of assets during its bankruptcy proceedings. Specifically, the trustee accused Kamensky of misconduct for attempting to block competing bidders from acquiring portions of the luxury retailer's assets. This alleged interference with the bankruptcy auction process triggered formal government scrutiny and invalidated the firm's investment thesis in Neiman Marcus.
Marble Ridge, founded in 2015, specialized in distressed debt investments and restructuring opportunities. Kamensky, a former partner at prominent hedge fund Paulson & Co., brought deep bankruptcy expertise to the role, having worked earlier in his career as a bankruptcy attorney. The firm had positioned itself as Neiman Marcus's largest single unsecured creditor as of the retailer's bankruptcy date, according to the trustee's report—a position that gave Kamensky both financial interest and influence in the bankruptcy process.
The hedge fund had been an aggressive and public critic of Neiman Marcus long before the retailer entered bankruptcy, establishing a contentious relationship that likely motivated Kamensky's subsequent attempts to shape the asset sale outcome. The firm told investors it would "manage the liquidation in the best interests of our investors and with the objective of protecting and enhancing the value of the funds' assets," though the exact timeline and recovery rates remain unclear.
The closure represents a stark reversal for a specialized distressed debt manager whose expertise and insider knowledge of bankruptcy processes—traditionally a competitive advantage—became a liability when that knowledge was deployed to manipulate creditor auctions rather than maximize recoveries through legitimate means.
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