Fund of funds prepare for hostile investor reaction in Madoff fallou

Date: Tuesday, January 20, 2009
Author: Wealth Bulletin

Fund of funds managers who invested with Bernard Madoff are preparing themselves for a hostile reaction from their investors, even if they slashed or redeemed their positions before the Wall Street financier’s alleged $50bn (€37.5bn) Ponzi scheme came to light, according to report in the Financial Times.

Besides the possibility of being ordered by the courts to return all but their initial investment in the Madoff scheme - even if that money has already been returned to their own investors - the funds also face the likelihood of having to significantly restate their results going back years.