Tuesday, 21 October 2014
Last updated 53 min 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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...