Man’s RMF Rewrites Investment Procedures In Madoff’s Wake

Feb 17 2009 | 1:27am ET

The Man Group’s fund of hedge funds arm has learned its message from the Bernard Madoff scandal.

RMF Investment Management, which lost US$360 million in the alleged US$50 billion Ponzi scheme, will now insist on face-to-face meetings with all decision makers who work on the funds it invests with, Reuters reports. The division reviewed its investment process following Madoff’s arrest in December.

RMF’s Four Seasons Strategies Fund, like the firm’s other products, had previously insisted only on meetings and due diligence on the managers of a fund it invested with, but not necessarily those funds’ underlying managers.

Thus, RMF had met with Tremont Group Holding’s Rye Investment Management, but not with Bernard L. Madoff Investment Securities, with whom Rye had invested substantially all of its assets under management, since 2001. RMF had invested in the Rye Select Broad Market XL Portfolio.

Were it making that investment now, RMF would require a meeting with Madoff Securities, according to Standard & Poor’s. S&P rates the Four Seasons Fund; fellow ratings agency Fitch Ratings last week downgraded four of the fund’s classes due to the “severity of losses and marked reduction in underlying fund liquidity.”

Man has previously announced that it would take legal action over its Madoff exposure.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR