• 15 May 2009 at 11:22 AM

The Trouble At RenTech

jimsimonslightsup.jpgZero Hedge is onto a bit of bother over at Chez Simons. To wit:

Zero Hedge decided to investigate just what may have been so out of place in RenTec’s SEC Form ADV that it needed to amend it. To our amazement, we stumbled upon this very curious disclosure in RenTec’s Section 11.E, where to a question of:
Has any self-regulatory organization or commodities exchange ever: found you or any advisory affiliate to have been involved in a violation of its rules (other than a violation designated as a “minor rule violation” under a plan approved by the SEC)?
The answer is an emphatic Yes radio button.

Oh boy. That’s going to leave a mark.
Earlier: Live-Blogging The Renaissance RIEF Call

Dear Renaissance Investor

Is There More Than Meets The Eye At RenTec? [Zero Hedge]

Comments (35)

  1. Posted by guest | May 15, 2009 at 11:29 AM

    Smoking is bad for you.
    Accept Jesus into your life.
    Mario VanPeoples

  2. Posted by guest | May 15, 2009 at 11:35 AM

    No comment.

  3. Posted by guest | May 15, 2009 at 11:38 AM

    “[My pedigree in] Mathematics, [your lack of] Common Sense, and Good Luck [figuring out my scam]“.
    Plot Medallion and Fairfield Greenwich returns on the same chart; tell me which is the fake.
    Here is some math: RIEF = true returns; Medallion = bogus returns.

  4. Posted by guest | May 15, 2009 at 11:40 AM

    Comment

  5. Posted by merkin capital partners | May 15, 2009 at 11:46 AM

    why is the small-headed dark son of grant hill on cnbc every day?

  6. Posted by guest | May 15, 2009 at 11:46 AM

    Who is Elizabeth Spring?

  7. Posted by Anal_yst | May 15, 2009 at 11:48 AM

    @3
    If they’re running a scam its more likely they just “selectively book” trades in each fund, but that’s a big “if”
    btw anyone know who Rentech’s auditors are?

  8. Posted by guest | May 15, 2009 at 11:50 AM

    Are analysts allowed to take bovine growth hormones?
    Porter Stansberry

  9. Posted by guest | May 15, 2009 at 11:51 AM

    6 That’s the name Bess used to scam her way onto the investor’s call.

  10. Posted by guest | May 15, 2009 at 11:53 AM

    @6- the name bess used after they found out she was on the call.

  11. Posted by guest | May 15, 2009 at 11:54 AM

    Does Medallion use Chern-Simons theory (for those with string theory background)….

  12. Posted by guest | May 15, 2009 at 11:56 AM

    @9,10: who is John Galt?

  13. Posted by guest | May 15, 2009 at 11:57 AM

    Someone on Zerohedge commented:
    “JJ 39 minutes ago
    Could Simons be the next Madoff?…”
    Maybe he’s what Madoff was supposed to be, hi frequencying those RIEF orders like the Mad market makers were supposed to be doing. Nova a big trader with Instinet? Now why was that?

  14. Posted by guest | May 15, 2009 at 11:59 AM

    @12 FTW
    -6

  15. Posted by guest | May 15, 2009 at 12:01 PM

    My comments are always awesome.
    awesome commenter

  16. Posted by guest | May 15, 2009 at 12:13 PM

    I hate to embarrass myself in front of the community (since you all know me as “guest”), but I’ve gotta ask:
    What did I miss in background on the recent spate of Porter Stankberry jokes? I mean, he’s a joke, and always has been, but I’m thinking there’s some deeper connection to the current outbreak, and inquiring minds want to know WTF.

  17. Posted by guest | May 15, 2009 at 12:17 PM

    Haha, @16, Porker Stankberry. Thats funny. I have no idea who he is, but that is a funny name.
    commenter

  18. Posted by guest | May 15, 2009 at 12:27 PM

    Lovey, fetch my money belt. I’m off to empty our account with that Hasidic fellow Simons.
    - Basil Smallpiece

  19. Posted by guest | May 15, 2009 at 12:34 PM

    what-what-what!!?
    and btw, much respect to Mr. Frey who started out at a community college and landed at Rentec. But here’s some resume. If you have a PhD AND teach, please don’t put your GPAs on your C.V. It’s really poor taste.

  20. Posted by guest | May 15, 2009 at 12:45 PM

    Yeah, ZeroHedge dug up the fact that they paid a $20k fine for a paperwork violation in 2002. Way to go guy! You really nailed Simons to the wall. It’s gotta be a ponzi!

  21. Posted by guest | May 15, 2009 at 12:46 PM

    @20- that’s completely his (ZH) MO.

  22. Posted by guest | May 15, 2009 at 1:13 PM

    Is the defender of said people starting to tire in the slightest? it is better to be a good person for your strength is true

  23. Posted by guest | May 15, 2009 at 1:32 PM

    In light of the fact there are four million regulations to be waded through by broker dealers every day and regulators have to justify their existence by questioning every single bathroom break, it is absolutely impossible to get through the week without being in technical violation of some idiotic and arbitrary regulation or other without ever realizing.
    The difference between “minor” and “major” rules is pretty arbitrary too. Find me anyone who has been in business longer than five days who hasn’t accidentally violated some rule.

  24. Posted by guest | May 15, 2009 at 1:38 PM

    looks like cnbc is about to run a segment about this.

  25. Posted by guest | May 15, 2009 at 1:41 PM
  26. Posted by guest | May 15, 2009 at 1:43 PM

    takes them two days to put the story together after they read it here.

  27. Posted by guest | May 15, 2009 at 1:46 PM

    @19- Agree with you on the props to Frey part. He’s a genuinely decent guy, and despite the money he’s made, never forgot his roots.

  28. Posted by guest | May 15, 2009 at 1:46 PM

    @27- and the same can apparently be said for the wsj.

  29. Posted by guest | May 15, 2009 at 1:50 PM

    29 Actually the wsj had a article today in the weekend real estate section on Lewis reducing the price of his weekend home. Surprised it hasn’t been picked up here.

  30. Posted by guest | May 15, 2009 at 1:53 PM

    @30- i’m talking about the renaissance story they ran today, genius.

  31. Posted by guest | May 15, 2009 at 1:57 PM

    mc to the c on cnbc– “what’s the big deal? if investors don’t like the return, they can pull their money out….”
    yeah, that’s what i said about madoff investors too. what’s the big deal?

  32. Posted by guest | May 15, 2009 at 2:11 PM

    This whole thing is silly. Renaissance says they updated their ADV II. So, Zerohedge posts a pic of the publicly available ADV I radio button that has been “yes” for quite some time (note: not updated) and makes an issue of it. I mean, Renaissance may totally suck, but c’mon. This is not journalism.

  33. Posted by guest | May 15, 2009 at 2:14 PM

    If I lose money in a fraudulent investment, should I take the money out (if there’s anything left) and forget that it happened?
    That’s a question that mc to the c can’t answer.

  34. Posted by guest | May 15, 2009 at 2:33 PM

    @34
    What are you talking about, Madoff or Rief? Just because Rief lost money does not make it fraudulent. You obviously are not an investor, but if you were since the beginning, you are down less than 10%, and are still ahead of the S&P.

  35. Posted by Anal_yst | May 15, 2009 at 4:31 PM

    fwiw per Zerohedge, PWC audits Rentech, domiciled in Malta and bermuda, SELF-ADMINISTERED, jpm/db prime brokers

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