Hedge fund managers: Are you full of great, bold, interesting trade ideas? Haven’t gotten enough money from Blackstone (or anyone else) and/or have an annoyingly restrictive prospectus that won’t allow you to let it all ride on one of them? Need a little extra scratch?
The arrests and the hundreds of millions of dollars in potential losses notwithstanding, is the alleged fraud at German fund of hedge funds firm just a simple case of lost in translation? Or an accounting snafu?
Cautioning against boldness, the firm’s auditor–a professor of finance and accounting at an august German institution of higher education–wants us to remember that “until now nothing has been proven.” After all, that country’s financial authorities and courts can’t even decide if the firm can even be regulated, let alone prosecuted.