What do these numbers have in common? BLM. Bernard L. Madoff. His golf handicap (which some also thought was bogus, while his real handicap was likely 14-15); the number of customer claim forms mailed out (8000 investors bilked and cheated); and the current sum total of potential "missing" funds (in billions, although this likely has some double accounting for FOF-investor pairings).
FT has a new story with some new details pieced together " ... from interviews with dozens of his friends, colleagues and investors, most of whom do not wish to be named ". Details from the life and times of an elite member, one of the top 5%, of the more than 11,000 SEC registered investment managers as measured by reported AUM. He was referred to as "the Jewish T-bill". He was introduced to a former tennis star as a "miracle worker" at the US Open in August. All seemed pretty normal. The reality behind the scenes was that the efforts to replace redemptions was under full acceleration. Previous restrictions to an otherwise closed fund were cast aside. Retail investors were courted. But the flow could not be stemmed. The writing was on the wall.
But the real shocker to me was the revelation that the story told to the sons as described in the SEC complaint, was actually two stories told at different times with the sons comparing notes afterward. So, even at the end of the line, Dad tried to keep a lid on things, telling one son of the challenge with redemptions, and the other the idea of advance bonuses. After comparing notes, they confronted dear old Dad, and then promptly called a lawyer.
As this story unfolds, I expect the incredulousness of this .... event ..... will only magnify.
See the Full Story Off the fairway (Brooke Masters FT)
FT has a new story with some new details pieced together " ... from interviews with dozens of his friends, colleagues and investors, most of whom do not wish to be named ". Details from the life and times of an elite member, one of the top 5%, of the more than 11,000 SEC registered investment managers as measured by reported AUM. He was referred to as "the Jewish T-bill". He was introduced to a former tennis star as a "miracle worker" at the US Open in August. All seemed pretty normal. The reality behind the scenes was that the efforts to replace redemptions was under full acceleration. Previous restrictions to an otherwise closed fund were cast aside. Retail investors were courted. But the flow could not be stemmed. The writing was on the wall.
But the real shocker to me was the revelation that the story told to the sons as described in the SEC complaint, was actually two stories told at different times with the sons comparing notes afterward. So, even at the end of the line, Dad tried to keep a lid on things, telling one son of the challenge with redemptions, and the other the idea of advance bonuses. After comparing notes, they confronted dear old Dad, and then promptly called a lawyer.
As this story unfolds, I expect the incredulousness of this .... event ..... will only magnify.
See the Full Story Off the fairway (Brooke Masters FT)
UPDATE1: Bloomberg has also added to the details of the Madoff story placing the responsibility at the hands of those who knew and didn't say anything. (Madoff Enablers winked at suspected front-running).
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