V.A. Candidate Faced Criticism For Hedge Fund Link

Jun 4 2014 | 8:35am ET

A possible nominee to lead the troubled U.S. Department of Veterans Affairs could face tough questions about his ties to a hedge fund.

President Barack Obama is considering Delos Cosgrove, CEO of the Cleveland Clinic, for the job, which opened last week with the resignation of Secretary Eric Shinseki following an internal review that found an agency rife with mismanagement, treatment delays and falsified records. But Cosgrove, an Air Force veteran and heart surgeon, comes with a bit of controversy of his own.

Cosgrove's links to hedge fund Foundation Medical Partners were criticized in 2005. The fund invested in companies that conducted studies at the clinic.

The controversy, which included another doctor involved with a different hedge fund, led the Cleveland Clinic to tighten its conflict-of-interest policy. An internal review criticized Cosgrove’s disclosure practices, but did not accuse him of any ethical violations.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...