If pension funds put more money into alternative investments such as hedge funds, a wider range of investors is at risk if a big fund blows up.Officials at Chicago's CME staunchly oppose the idea of a single financial regulator.
Moreover, the banks that lend to them and the brokers that allow them to leverage their trading positions all have a keen interest in knowing their customers.Keeping watchSuch a hands-off approach will look awfully complacent when a big hedge fund blows up, or when some hedge-fund scandal hurts small investors.
A few high-profile fund blow-ups have already prompted prime brokers to tighten their practices.
Witness: Rumors of hedge funds blowing up run rampant through the tape.
But Tony Buzbee, another lawyer who has settled many claims through the fund, blew a gasket when I told him that.
Shrugging off the embarrassment of seeing one of its fixed-income funds blow up in March, Carlyle Group this month closed a $1.4 billion fund to take advantage of bargain prices.
Shrugging off the embarrassment of seeing one of its fixed-income funds blow up in March, The Carlyle Group this month closed a $1.4 billion fund to take advantage of bargain prices.
Mr. Metzger worked for 18 years at Paloma Partners, one of the granddaddies of the hedge fund industry, and he likes to remind people that more hedge funds blow up because of poor administrative controls than poor investments.
"Instant messages were lighting up, and people were saying 'This looks like a big European hedge fund blew up.' " Indeed, there was little market-moving data before the plunge.
When the hedge fund blew up and lost most of its assets, Brafman said, Shkreli practically ran himself into the ground to return all his investors' money by, yes, giving them shares of a totally unrelated drug company he was building, Retrophin, that weren't his to give.
