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

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

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

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of