The Great Debate UK

from Reuters Investigates:

Hedge fund investors flex their muscles

By Emily Chasan

Bernie Madoff, didn't technically run a hedge fund, but his effects on the industry are still being felt today. 

Hedge fund investors learned the hard way that they wanted to invest in hedge funds with a more institutional feel, and pushed successfully over the past few years for reforms to hedge fund redemption policies, transparency, use of outside fund administrators and even lower fee structures.

Neil Chelo, director of research for $1.8 billion fund of hedge funds Benchmark Plus in Tacoma, Washington, is applying the techniques he and Harry Markopolos used to sleuth out Madoff to the industry today -- asking portfolio managers to justify their positions on the spot, and reverse engineering a hedge fund's return expectations to make sure a manager is actually delivering value.     

The result is that the world's biggest hedge funds look much more like mutual funds, which makes big investors like pension funds feel safer about investing in the $1.9 trillion industry. 

from Reuters Investigates:

For hedge fund titans, the long and the short of it

Our latest special report profiles one of the more colorful figures in the hedge fund world -- William Ackman. Wall Street Investigations editor Matthew Goldstein teamed up with funds correspondent Svea Herbst-Bayliss, who was in New York this week for the Value Investing Conference.

Here's what Matt has to say about Ackman and one of his rivals.

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"Hedge fund managers William Ackman (left) and David Einhorn (right) are fairly good friends and sometimes they find themselves on the same side of a debate over a stock.

Where did all the “Madoff” money go?

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Erin Arvedlund- Erin Arvedlund is a journalist who has worked for Dow Jones, The Moscow Times, TheStreet.com, Barron’s and the New York Times.  She is author of “Too Good to be True: The Rise and Fall of Bernie Madoff“. The opinions expressed are her own. -

Where did all the money go?

After I wrote “Madoff: The Man Who Stole $65 Billion” this was probably the first question I received from almost everyone. And I am forced to tell the bizarre truth: there’s probably no money left.

from Commentaries:

Stones and glass houses, offshore tax haven edition

One of the week's more amusing stories takes us to the sun-kissed shores of the Cayman Islands, scuba diver's paradise, magnet for hedge funds and - until very recently - world-beating tax haven.

The financial crisis has not been kind to the Caymans. Hundreds of hedge funds have collapsed and global banks have slashed jobs. As if this was not enough, President Barack Obama in the spring launched a crackdown on tax havens that forced a number of Caribbean islands, including the Caymans, to embrace greater transparency - after a fashion.

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