Victims of Bernard Madoff’s fraud are being mailed a slice of a $2.4bn payout, bringing their total recovery amount so far to more than triple the amount initially set aside.
Four recent enforcement actions in the hedge fund space by the US Securities and Exchange Commission (SEC) are the result of warnings generated by a new quantitative model – indicating that a decision to invest in economic analysis is paying off, the agency’s chief economist has said.
Hedge funds might capture news headlines when they lose money as a result of financial crimes and misdemeanours, but pensions are stung more often partly due to their more regular investing patterns, according to a securities litigation lawyer at US firm Labaton Sucharow.
A small Caribbean islands has potentially had a large impact on future hedge fund fraud cases, after ruling one offshore feeder fund into Bernard Madoff could not recoup redemptions they had honoured before the fraudster was caught.
The growing field of onshore alternatives funds are already forming a bubble and will be the next case of mis-selling by the hedge fund industry, according to leading practitioners.
Now, who would have thought it? Retail investors, second rate citizens for many hedge funds during and since the crunch, now hold the main key to access some of the world’s most sought-after managers.
Some investors locked into hedge funds in the financial crisis may not have redemptions satisfied fully until 2015, according to market intermediary Tullett Prebon, in a sign the liquidity crunch that hit almost three years ago has further to run.