Sandra Manzke, Maxam Capital Management CEO, is linked to at least $6.7 billion in losses in the Madoff scandal. There are unpublished reports that one or more unidentified Maxam fund made significant redemptions late in 2008 that have not been clawed back by the Madoff trustee yet.

How much money did Sandra Manzke manage and how much was lost to Bernie?

In December, Manzke declared she was "wiped out" after experiencing losses of $300 million. But according to her investment advisor disclosure statement filed with the SEC on 1/9/2009, she had $1 billion under management.

Maxam reported an affiliation with only one limited partnership, Maxam Absolute Fund which had a balance of $243 million. The fund was incorporated in Delaware in 7/2005 and Form D was filed in 2/2006.

Approximately $750 million under management was not identified.

In 1/2006, Maxam registered Maxam Attucks Diversity Fund. On Form D, Maxam stated the maximum amount of securities to be sold was $1 billion but none had been sold as of that date. The fund was incorporated in the Caymans and the executive officer was JPMorgan Tranaut Fund Administration (Ireland) Limited.

An amendment to the Maxam Attucks Form D was filed on 3/19/09 with the SEC. I don't know what is in it because unlike other Form Ds, it is only available in paper form  (which the SEC should not permit, imo.)

A second amendment to the Maxam Attucks Form D was filed on 4/30/2009. By then, the name had been changed to Attucks Diversity Fund ltd. The officers are with Attuck Asset Management in Chicago. The amount of securities sold was $5.5 million.

Other than Form 13F, Maxam Capital Management filed one other report with the SEC. It was listed on Form 40-APP which is a request for exemption. It too is only in paper form. The companies listed along with Maxam Attucks are Wilshire Variable Insurance Trust, Wilshire Mutual Funds Inc., and Wilshire Associates.

I did a little digging and I think I may have found one of the missing funds.

In 2/2008, Wilshire Mutual Funds filed Form N-1A which apparently is an amendment to a prospectus for the Wilshire MAXAM Diversity Fund which "seeks growth through stocks that offer the opportunity for capital appreciation..."

The prospectus states the fund may appeal to an investor who wants to invest assets with money managers that are minority-or-women owned.

The propectus goes on to say Wilshire Mutual Funds will be the senior investment advisor and MAXAM is the sub-advisor. MAXAM is owned by Sandra Manzke. 

On 12/22/2008, the Wilshire Mutual Fund board of directors issued a supplement to the prospectus:

"On December 22, 2008, the Board of Directors determined that it was in the best interests of the Wilshire/MAXAM Diversity Fund (the "Fund") to redeem all the outstanding shares of the Fund on January 15, 2009, and to terminate the Fund.  Prior to January 15, 2009, shareholders of the Fund may redeem their shares or exchange their shares for shares of another Wilshire Fund.  Any shares of the Fund that have not been redeemed or exchanged prior to January 15, 2009, will be redeemed automatically at their net asset value on that date."

Update I: Shares in the Wilshire MAXAM Diversity Fund traded under two classes of stock, investment class and institutional class. The respective trading symbols are WMDFX and WMDGX.

Yahoo Finance still  lists the share price at $36.59 as of 1/1/5/2009. The one-year chart shows the fund share price dramtically increasing from $10 to $40 in October 2008 which is the month the Form 40-APP Request For Exemption was filed. The fund probably reduced the number of shares outstanding to incease per share price.

According to a 9/30/2009 N-Q (list of investments held), the total value of the Wilshire MAXAM Diversified Fund was approximately $15 million, most of which was categorized as "other assets". Whether or not other assets are treasury bills is not determinable.

If the fund invested in Bernie, that was not disclosed.

The question of what constituted the $750 million in assets under managment remains unanswered.  

Update 2: According to this article, Manzke managed a $100 million fund for the Seattle Transit Union and an unspecified allocation from the Chrysler Corp.Retirement System.

She also managed the Maxima Alpha Bomaral and Maxima Alpha Strategy Funds, based in Jersey in the Channel Islands.

Deutsche Bank marketed 5 year 2.5x leveraged certificates in the two funds as described in a prospectus.

In 2007, Matrix Money Management announced that MAXAM would manage its new fund.

In 11/2005, Maxam announced it would market three investable hedge fund indices. According to the press release, Maxam had $1.3 billion under management at the time.