Ok manager boy. If you gave your Scroll and Key buddies a wink and a nod so they could sneak their redemptions out before the freezes, well, you are in a world of hurt and some people are going to want to talk to you. Hell, with the present mood of the public, you may well get yourself 20 years.

A surge in redemption suspensions and liquidations in the past year has created “particular concern as to whether hedge- fund advisers may be favoring their own interests above others,” Walter said today in prepared testimony to the House Financial Services Committee. “Principals, employees or favored investors of the hedge-fund adviser may have received ‘preferential redemptions’ from the fund at issue.”

SEC Hunts for ‘Preferential’ Hedge-Fund Redemptions [Bloomberg]

Comments (6)

  1. Posted by guest | March 20, 2009 at 3:59 PM

    Too Yale, didn’t read

  2. Posted by guest | March 20, 2009 at 4:02 PM

    Too True, rather not discuss!

  3. Posted by maggies farmboy | March 20, 2009 at 4:03 PM

    I, for one, am shocked at the suggestion that any such unethical behaviour could have gone on in the hedge fund industry. *cough*

  4. Posted by guest | March 20, 2009 at 4:39 PM

    is EP an Eli???

  5. Posted by guest | March 20, 2009 at 5:04 PM

    @2
    Dead on

  6. Posted by guest | March 20, 2009 at 5:11 PM

    Secret societies mean next to nothing after college. The only thing that matter is your potential to make money for the person hiring you.

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