Saturday, December 13, 2008

Bloomberg: Madoff fund of funds didn't do their due diligence

“It was just too easy to sell,” said Salomon Konig, chief investment officer for Artemis Capital Partners LLC in Aventura, Florida, which invests with hedge funds.

“Whenever a fund had money with Madoff, it raised a red flag,” said Konig, who said he rejected at least 20 funds of funds as potential investments for that reason alone. “It means that they didn’t do their due diligence they were supposed to and were chasing those returns.”

The SEC didn't due their due diligence on Madoff because he was one of their own. It would appear to investors that he got their blessing. Look at how the SEC

SEC officials stress that it was Madoff's separate and secretive investment-adviser business that was used to perpetrate the alleged scheme, and that examinations of the securities operations wouldn't necessarily have detected irregularities. The hedge fund business didn't register with the SEC until September 2006.

If it it was seperate and secretive why wasn't it looked into?

About the 13F filings? How about that discrepancy?

And maybe people should check out Izzy Englander's Millenium Management LLC hedge fund, who previously got in trouble for market timing mutual funds and creating fictitious accounts to do it with. Check out his latest positions, and compare the size of the positions he allegedly uses with his assets under management to give returns, and then ask if he deserves another look. At quarter end, a huge, mysterious chunk of funds always seems to end up in an ETF! He manages upwards of $10 billion, but he never seems to have any noteworthy stock positions. Click on Millenium on the top right, in the link below who is the largest owner of the SPY, and you'll see his positions, and you can do the math.

Maybe that's why investors yanked a billion dollars from him last quarter.

Some have said those investors were just panicky for no reason Maybe. But in a panic, he who panics first wins!


Anonymous said...

I think the nasdaq website has a mistake, According to the sec filing Millenium ownes 43 million shares, not 43 Billion
SPDR TR UNIT SER 1 78462F103 571935943293109 SH DEFINED 1 43,293,109

Palmoni said...

I know that..The 13F's never come close to the assets under management however.

And the purchase of the SPAC's and shorting of the warrants giving you the option to vote against the deal and get your cash, and have the warrants be zero, or vote for it if it's a home run...How did that become a strategy?

Anonymous said...

Whats wrong with that strategy?

Anonymous said...

In it something is. I will know, I thank for the help in this question.

xlpharmacy reviews said...

I have the idea that Salomon Konig is one of the most important man talking about make money..Artemis Capital Partners LLC is an important company .I would like to find a job there.. thanks for sharing your post was very interesting!