David Kirkpatrick

January 20, 2009

Missing hedge fund manager

Filed under: Business — Tags: , , , , , , — David Kirkpatrick @ 6:38 pm

I have a feeling this type of story, and reports of suicide, will continue for a while as rotten apples drop of the financial world’s trees.

From the link:

The F.B.I. and securities regulators have joined the investigation of Arthur Nadel, a Florida hedge fund manager who disappeared four days ago, leaving clients concerned that they might have lost as much as $350 million.

The Federal Bureau of Investigation and the Securities and Exchange Commission are helping on the case, police Lt. Stanley Beishline of Sarasota, Fla., said in a telephone interview.

 

One of Mr. Nadel’s business partners, Neil Moody, said Mr. Nadel had spoken to his wife, Peg, since he was reported missing. Mr. Nadel, 76, is president of Scoop Management in Sarasota, which oversees funds that include Valhalla Investment Partners. Mr. Moody holds no position in Scoop Management and was a partner with Mr. Nadel only on the Vahalla fund and two Viking funds.

Scoop’s claim to have managed as much as $350 million ”may be high because performance results were exaggerated,” Mr. Moody said in an interview. Mr. Moody said he did not know anything was wrong until Mr. Nadel was reported missing.

Mr. Nadel was last seen by his wife at 8:45 a.m. on Wednesday when he left for work, said Lt. Chuck Lesaltato of the Sarasota County sheriff’s office.

1 Comment »

  1. Scandals involving hedge funds are not new and show that even with fair warning (i.e. earlier hedge fund scandals), investors continue to put their heads in the sand and fair to conduct adequate due diligence. Unfortunately the Madoff scandal (and others) has raised the likelihood that regulators will require hedge fund managers to register in some capacity which may force some legitimate hedge fund managers to delay their hedge fund start up this year.

    Comment by Hedge Fund Attorney — January 21, 2009 @ 4:57 pm


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