Here are five statements recently made by five different money managers:
* You will get your Q3 letter before the end of Q4
* No, I’m not retiring so that I can start Long Island’s first tobacco plantation
* Ball parking it, our assets under management are in the range of this figure
* If you fucksticks don’t get it together I’m going to seriously consider eliminating KFC Fridays.
* Trust me, the 3&50 is worth it. You’re on a gravy train with biscuit wheels.
According to a new study, one of them is a lie.

One in five hedge fund managers misrepresents their fund or its performance to investors during formal due diligence investigations, research from New York University’s Stern School of Business suggests. Using confidential data taken from 444 due diligence reports commissioned by investors between 2003 and 2008, academics at Stern analysed the extent to which hedge fund managers’ representations about their funds differed from reality. Managers most commonly misrepresented the amount of money they had entrusted to their funds, their performance and their regulatory and legal histories, according to the research.
One manager told investigators that his assets under management were $300m (£190m) higher than they actually were. Another fund – according to Professor Stephen Brown, one of the report’s co-authors – was found to have lied about the unblemished legal records of its partners. The founders of the fund in question, it transpired, both had criminal records, having once stolen a Chinese junk.


Hedge Funds Misrepresent Facts, Says Research
(FT)

Comments (29)

  1. Posted by guest | October 14, 2009 at 11:33 AM

    The 3&50 *is* worth it but more importantly i could go for a biscuit right about now.
    -sc

  2. Posted by guest | October 14, 2009 at 11:33 AM

    whats the big deal. I mean, who hasn’t “stolen a Chinese junk”

  3. Posted by guest | October 14, 2009 at 11:35 AM
  4. Posted by guest | October 14, 2009 at 11:36 AM

    @bess- christ almight I said “a gravy train with biscuit wheels drowning in chocolate sauce.”

  5. Posted by guest | October 14, 2009 at 11:38 AM

    I once made my trader biotches drink some Chinese junk. They then love me long time.
    -Ping J

  6. Posted by guest | October 14, 2009 at 11:38 AM

    I steal “junk” all the time, too but in this case it refers to dick.
    -dollar dom

  7. Posted by guest | October 14, 2009 at 11:42 AM

    @5 you still haunt my dreams.
    -AT

  8. Posted by guest | October 14, 2009 at 11:42 AM

    @3
    You’re an idiot. Please flog yourself now.

  9. Posted by guest | October 14, 2009 at 11:42 AM

    No frigging way we give up the KFC.
    PTJ

  10. Posted by guest | October 14, 2009 at 11:43 AM

    @8 why am I an idiot? guarantee you 2 thought that sentence was a typo, and didn’t know what the term ‘junk’ referred to.
    -3

  11. Posted by guest | October 14, 2009 at 11:46 AM

    I guarantee you #2 knows a Chinese Junk is boat. A Galway hooker on the other hand he may not be familiar with.

  12. Posted by guest | October 14, 2009 at 11:48 AM

    I have junk in my trunk.
    MB

  13. Posted by turd_ferguson | October 14, 2009 at 11:48 AM

    My monthly statements from BLM IS and Stanford Financial appears to be a couple of the straght shooters…phew! Just another couple years of these returns and I can finally retire.

  14. Posted by guest | October 14, 2009 at 11:52 AM

    In Soviet Russia, Hedges fund you.

  15. Posted by pfluger | October 14, 2009 at 11:56 AM

    Bernie was singled out, probably because he’s a Jew.

  16. Posted by guest | October 14, 2009 at 11:56 AM

    How about a Dealbreaker get together at one of those Russian supper clubs in Brooklyn.
    http://www.rasputinny.com/index.htm
    Get you yuppie biotches out of Manhattan once in a while.

  17. Posted by bess you vicious animal liar | October 14, 2009 at 11:57 AM

    I repeat: We have Billions under management
    - Cliff Assness

  18. Posted by guest | October 14, 2009 at 11:59 AM

    @14 only if you work for the government

  19. Posted by pfluger | October 14, 2009 at 12:00 PM

    @16:
    The owner of dat joint is a friend-a-mine. I’ll be dare dat day, prepared to autograph my authoratative history of what caused da market meltdown. I will also divulge my top ten stock picks for 2010. Don’t miss it!
    -cg

  20. Posted by guest | October 14, 2009 at 12:00 PM

    This is why I am retiring.
    Jim Simons

  21. Posted by guest | October 14, 2009 at 12:01 PM

    @3 is correct, I didnt know what that was. I will show myself out.
    -2

  22. Posted by guest | October 14, 2009 at 12:09 PM

    Who wants to see my fuzzy navel?
    Dick Bove

  23. Posted by guest | October 14, 2009 at 12:09 PM

    Think of it like a game of ookie-cookie. No matter what I’ll be holding the cookie and I will win.
    -SAC

  24. Posted by guest | October 14, 2009 at 12:15 PM

    @23 that’s going in the marketing material.

  25. Posted by guest | October 14, 2009 at 12:15 PM

    @21
    If you are really #2 then you should flog yourself for being a complete dolt.

  26. Posted by american bandersnatch | October 14, 2009 at 12:19 PM

    Wow, i feel lucky we’re only paying out 3 & 35 on one of our funds.

  27. Posted by Anal_yst | October 14, 2009 at 12:56 PM

    I am Anal_yst’s complete lack of surprise

  28. Posted by pfluger | October 14, 2009 at 1:18 PM

    I know all about da hanky panky dat dese zoccola hedge fund managers run. My next book will be da trimumph of my storied career, where I will blow da lid offa dis racket. It will be annuda best seller.
    -cg

  29. Posted by Fred Gehm | October 15, 2009 at 1:43 PM

    I’ve got an article on my website about how to tell if your fund manager is lying to you. As far as I know, it is the only article ever published on this subject. Although I have had two books and fifty articles on investment management published I could never sell this article and so I published it myself. You can find it at: http://www.fredgehm.com/managingyourinvestmentmanager/isyourinvestmentmanagerlyingtoyou.html

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