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Frenkel & Co., Inc. Company
December 13, 2008
New York - A number of funds of funds may have fallen victim to the alleged fraud of well known fund manager Bernard Madoff. According to the Wall Street Journal, Fairfield Greenwich Group, Tremont Capital Management, and Maxam Capital Management LLC all had substantial losses resulting from the alleged Ponzi scheme. The losses are sure to lead to questions about the adequacy of the due diligence performed by the funds. “Funds of funds that invested in Madoff will get a double whammy,” said Whitney Tilson, who runs the T2 Partners hedge fund. “Not only will they have to take a loss, but they are going to have to do an awful lot of explaining for how they ever got fooled here.” The New York Times reports that the collapse of the Madoff firm is likely to propel calls for greater regulation of the hedge fund industry, beyond the current optional registration with the Securities and Exchange Commission.
Hedge Fund Insurance, a division of Frenkel & Co., Inc., sells Errors & Omissions and Directors & Officers Insurance policies that provide coverage for defense costs and any judgment or settlement arising out of a claim alleging covered wrongful acts - as well as fraud protection for hedge funds and hedge fund investors. Call Mike Feinstein at (212) 488-0270 for more information on E&O/D&O and fraud protection.
