HONG KONG (HedgeWorld.com)–Two new companies have arisen out of the debris left by Charles Schmitt & Associates Ltd. since its founder’s arrest in June.

Oria Capital Ltd., an investment adviser licensed by the Securities and Futures Commission, Hong Kong, and Oria Capital Management Ltd., will take over management of the funds that Jennifer Carver managed in her role as chief operating officer for CSA (see Previous HedgeWorld Story).

It was Ms. Carver, and former CSA managing director, sales and marketing, Brian MacDougall, who informed the SFC in June that internal documents led them to suspect irregularities in founder Charles Schmitt’s transfers of client monies. After an investigation, authorities placed Mr. Schmitt under arrest on suspicion of misappropriation.

Ms Carver is the chief executive of the new company. Mr. MacDougall is managing director, sales and marketing. In a statement Aug. 18, they said they have worked furiously to create a new structure for the funds that were in CSA’s care. One of those funds, CSA Absolute Return Fund (Dublin) Ltd., will henceforth be known as Oria Market Neutral Fund. The other, CSA Absolute Return Fund Plus Ltd., has become Oria Plus Fund Ltd. Both are expected to begin trading again within days, subject to regulatory approval.

The two funds together have approximately US$114 million under management.

Ms. Carver and Mr. MacDougall chose the name Oria because it’s a Greek term that means “beginning.”

“In researching it, we also discovered that it is the name of a small Italian village that has triumphed over repeated ransacking,” Mr. MacDougall said in the statement.

CFaille@HedgeWorld.com

Contact Bob Keane with questions or comments at: bkeane@investmentadvisor.com.