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

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.