The Globe and Mail reports in its Friday edition that a Toronto hedge fund manager who invested all of his fund's assets in a single illiquid penny stock has settled with the U.S. Securities and Exchange Commission. The Globe's Janet McFarland writes that Peter Kuperman will reimburse investors for almost $2.9-million (U.S.) in losses. The SEC said Thursday that Mr. Kuperman and his New York-based company QED Benchmark Management LLC misled investors about a fund's investment strategy and performance. The SEC said they marketed the QED Benchmark LP investment fund based on promises to follow a scientific stock-selection strategy that employed algorithms to focus on 285 different metrics in the areas of momentum, growth, value, risk and estimates, and that it would likely outperform the market. QED's offering memorandum and limited partnership agreement stated that no more than 20 per cent of its assets could be invested in any single security and no more than 5 per cent in any illiquid security. However, Mr. Kuperman "deviated from the fund's stated strategy" in almost every respect, the SEC said. He has also agreed to pay a $75,000 penalty and be barred from working in the securities industry.