Tuesday, 16 September 2014
Last updated 2 hours ago
Mar 2 2009 | 10:59am ET
Hedge funds don’t usually concern themselves with existential questions, but in the wake of the Bernard Madoff scandal and a slew of smaller alleged frauds, D.E. Shaw Group is doing just that.
The New York-based firm says it will appoint independent administrators for its funds, and that one of their jobs will be to ensure that its investments actually exist, the Financial Times reports. Investors, especially of the institutional variety, have clamored for U.S.-based hedge funds to hire independent administrators in the wake of Madoff’s arrest, with some threatening to pull their money from firms that fail to do so.
“Up until recently, valuation was the issue investors in alternatives were most focused on,” D.E. Shaw spokesman Darcy Bradbury told the FT. “Now, we’re going beyond that and looking at third-party administration arrangements where an administrator would also substantiate positions and cash balances.”
The court-appointed receiver for Madoff’s firm said recently that is appears that Madoff, accused of defrauding investors of $50 billion, never invested a dime in what authorities call the largest Ponzi scheme in history.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
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