Anglo American Security Fund v. S.R. Global International Fund
Delaware Court of Chancery
829 A.2d 143 (2003)

- Written by Rich Walter, JD
Facts
S.R. Global International Fund, L.P. (fund) (defendant) was a hedge fund created for the sole purpose of maximizing profits for Anglo American Security Fund, L.P. and the fund’s other limited partners (investors) (plaintiffs). The partnership agreement gave the fund’s general partner, Sloane Robinson Investment (Cayman), Ltd. (Sloane) (defendant), total control over the fund’s affairs. The agreement entitled the investors to receive only routine financial reports and effectively forced the investors to wait six weeks before closing or transferring their fund accounts. The fund’s 1999 financial report failed to disclose Sloane’s improper withdrawal of over $22 million from the fund, which significantly diminished the fund’s value and the value of each investor’s fund account. When the nondisclosure came to light, the investors closed their accounts and sued Sloane in the Delaware Court of Chancery for negligence and breach of fiduciary duty. Sloane moved to dismiss the suit on the grounds that Delaware law gave only current limited partners the rights to bring a derivative action for wrongdoing against a partnership.
Rule of Law
Issue
Holding and Reasoning (Chandler, J.)
What to do next…
Here's why 825,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,400 briefs, keyed to 990 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.