Not Only You: Financial Leaders Invested in Markstone Too

Alongside its big institutional investors such as Clal and Menora-Mivtachim insurance, the Migdal Makefet pension fund and Hapoalim and Leumi banks, the Markstone Fund has drawn a variety of smaller but well-known private investors, companies, nonprofits and others.

These include investors like Dov Lautman, the founder of textile firm Delta; Roni Naftali, co-owner of the mineral water bottler Eden Springs and Big Shopping Centers; Morris Kahn, a co-founder of Amdocs, who sold Golden Pages to the Markstone Fund; Yossef Pinson, a director in Gaon Holdings whose family owns a 9% stake in the firm founded by Benny Gaon, and who is the controlling shareholder of New Horizon real estate company with a 24% stake in the company.

Smaller organizations that are invested in Markstone include the Technion; pension funds of the Hebrew University, Histadrut Labor federation and Israel Aeronautics Industries employees and career army soldiers' savings fund.

Elliott Broidy, co-founder and partner in the Markstone Fund along with Ron Lubash and Amir Kess, admitted last month to bribing senior managers of the New York State Common Retirement Fund, in order to raise the fund's biggest investment. Suspicions that the pension fund of state of California employees also invested in the fund under similar circumstances are under investigation.