Marto Capital, a once-promising investment firm founded by a former Bridgewater Associates employee, has once again found itself in the spotlight for all the wrong reasons. Despite being a “new age investment company” with zero active jobs, Marto was approved for emergency funds from the U.S. government under the Paycheck Protection Program. Although the firm would have received between $150,000 and $350,000 in potentially forgivable loans, it has refused to confirm or comment on the loan or provide any evidence that it plans to repay the money.
It’s not surprising that Marto’s ability to manage outside capital was recently relinquished. After all, the firm’s assets have dwindled from hundreds of millions to just $10 million to $20 million in its once-flagship systematic product by year-end, according to confidential records and a former employee’s estimate. In fact, Marto Capital has given up its active status with the industry’s main U.S. regulatory bodies and withdrawn as a commodity pool operator and member of the National Futures Association.
Despite these setbacks, Katina Stefanova, the company’s founder, continues to make outlandish claims. She recently boasted of securing a $1 billion-plus investment from a single ultra-rich individual but refused to provide any evidence of the money or allow a third-party to verify its existence. Moreover, experts have noted that investment firms cannot manage $1 billion in outside money without SEC registration, which Marto Capital no longer holds.
The fact that Marto Capital accepted PPP money is particularly galling given the investment industry’s continued success throughout the Covid-19 pandemic. With industry-wide assets under management remaining as vast as ever and among the highest average profit margins in the U.S. economy, the investment sector has hardly been impacted by the pandemic. The fact that Marto accepted this money is not only unethical, but it is also a slap in the face to all small businesses that are actually struggling to survive during these difficult times.
Katina Stefanova is a highly controversial figure in the investment industry. Despite founding Marto Capital, a once-promising hedge fund firm, she has been unable to keep the company afloat. Overall, Stefanova’s controversial business practices and outlandish claims have led many to question her credibility and suitability as a leader in the investment industry.
Oh, surprise surprise! It seems like workplace controversy is just another day in the life of Katina Stefanova’s Marto Capital. One former employee claimed she was fired for taking maternity leave, but apparently, the company had a different opinion after she returned. It’s clear that the toxic work environment is one of the company’s perks, with senior staff members such as Stefanova herself, allegedly yelling, belittling and criticizing employees on a regular basis.
And let’s not forget about the lack of transparency in the company’s management and decision-making processes. These workplace controversies have not only raised questions about Stefanova’s leadership and management practices but also exposed the atrocious treatment of employees in the investment industry. Pathetic, isn’t it?
