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.