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Clients of Fairfield, a secretive hedge fund advisory company based in Connecticut, lost $7.3 billion to Mr. Madoff's fund.
The institute said that fund advisory fees could include charges for administrative costs that are not part of pension advisory fees.
One hedge fund advisory firm alone, Fairfield Greenwich Group, said on Friday that its clients had invested $7.5 billion with Mr. Madoff.
Lazard's capital markets advisory unit reported a 41 percent decline in revenue for the quarter, to $16.4 million, owing largely to fewer fund closings by the firm's private fund advisory group.
Hamilton's investments include equity accounts managed by a variety of managers, like Southeastern Asset Management, a mutual fund advisory firm, and Eton Park Capital Management, a hedge fund started by the former Goldman Sachs star Eric Mindich.
Hedge fund assets rose to $563 billion last year from $408 billion, mostly from new sales, and the pace is said to be similar this year, according to a hedge fund advisory firm, the Hennessee Group.
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DealBook » Former Lehman Brothers Executive Dies | Charles Hopper, a hedge-fund advisory executive at Lehman Brothers before his ouster in 2007, hanged himself in his Connecticut home last month, The New York Post reports.
Increasingly, says James Hedges of LJH Global Investments, a hedge-fund advisory firm in Naples, Florida, hedge funds' strategies are correlated and their bets concentrated, because managers are making similar bets based on similar expectations.
The Hennessee Group, a hedge-fund advisory firm that compiles the index, reckons it reflects at least 50% of the capital in the hedge-fund industry.Volatile returns are to be expected.
Another document, this one prepared in 2007 as Fairfield Greenwich considered selling itself in what at the time was a very rich market for hedge-fund advisory companies, shows just how much money it made from its relationship with Mr. Madoff.
In 2007 Oaktree Capital Management, a hedge-fund advisory firm, chose to raise $880m in a private placement rather than an IPO because, as the founders put it, "they were happy to sacrifice a little public market liquidity, and even take a slightly lower valuation, in return for a less onerous regulatory environment and the benefits of remaining private .The third problem is growing short-termism.
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