Compliance

5 Ways Bad Hedge Fund Legal Counsel Hurts Their Clients (and Investors)

Nathan Anderson | June 23, 2016

hedge fund, legal counsel, complianceDisclaimer: I am not a lawyer. These are just general observations from my non-lawyerly experience. For actual legal advice you should consult your counsel; ironically the same counsel that I will now suggest could be sucking blood out of your organization like a tsetse fly.  But either way, don’t listen to me and listen to your lawyer (or a lawyer) instead.

The Story of How Shkreli’s Hated Move Almost Saved Him

Nathan Anderson | December 28, 2015
due-diligence, hedge fund, ponzi, shkreli

Shkreli trying on his new matching Tiffany’s bracelets

If infamous ‘pharma bro’ Martin Shkreli’s public statements since his arrest are any indication, he is likely to wage a trial by public opinion over the next several months.

Shkreli has already called his indictment a witch-hunt based on his much-hated move of jacking up drug prices rather than based on any legal wrongdoing. There seems to be some sympathy for this angle, and I wouldn’t be surprised to see upcoming pieces profiling his ‘introverted and misunderstood’ personality over the coming weeks. The talking heads have already begun to debate whether his unethical behavior with regarding to drug pricing merits the “response” by authorities.

How to Perform Hedge Fund Due-Diligence Like a Pro

Nathan Anderson | August 23, 2015

sherlockThere are several objectives to hedge fund DD (and it’s not all about making sure the manager isn’t a Madoff.) It helps to recognize from the outset that each hedge fund is first and foremost a business, and for businesses to be successful, they need to have a differentiated product, and a repeatable process for creating that product. In other words, what is the manager’s differentiating ‘edge’, what is their process for exploiting that edge, (and how does it fit into your portfolio)?

Hedge Fund Investors Are Funding Rogue Traders

Nathan Anderson | August 17, 2015

rogue-traderA rogue trader is a trader who risks extreme amounts of firm capital without authorization and then loses it. (Conversely, a rogue trader who MAKES billions is called a “managing director.”) Rogue trading happens when poorly designed incentives are coupled with weak operational controls. Before getting into the risk this presents to your hedge fund investments, let’s review history.