Swiss Funds Of Funds Still Suffering From Madoff

Dec 15 2010 | 1:44am ET

Geneva-based funds of hedge funds were especially hard-hit by the Bernard Madoff Ponzi scheme. And two years after its collapse, they're still struggling to pick up the pieces.

Funds based in the Swiss city have seen their assets under management drop by 60% since the week before Madoff's arrest in 2008. The more than 180 funds of funds managed US$14.8 billion at the end of October.

The same funds once managed as much as US$40 billion. A big chunk of the losses—some US$7 billion—were suffered in the Madoff fraud. Much of the rest is a result of investors fleeing the scandal-tarred firms, and funds of funds generally.

Union Bancaire Privée, the private bank that settled the Madoff receiver's lawsuit against it earlier this month for US$500 million, suffered particularly large losses. The fund lost about US$700 million in the Madoff scam and has seen its assets plummet more than 70% through June to about US$17 billion.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of