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Frenkel & Co., Inc. Company
December 24, 2008
New York - Hedge fund Fairfield Greenwich Group was sued in New York State Supreme Court by two investors who claimed the fund and its adviser "failed to manage properly their investments and to carry out necessary due diligence that would have uncovered the massive Ponzi scheme." Mike Feinstein, Executive Vice President of Hedge Fund Insurance, notes that "this is a great example of the type of claim that would be covered by an E&O/D&O policy. Hedge fund managers can purchase a policy for a relatively small premium that will pay for the cost of defending lawsuits alleging the adviser failed to conduct proper due diligence. Defense of these claims can easily run into the hundreds of thousands of dollars."
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.
