The Securities and Exchange Commission's Asset Management
Unit has been investigating whether hedge fund managers have overvalued assets
in "side pockets" and then charged investors higher fees based on those
inflated values. A side pocket is a type of account that hedge funds use to...
As we have previously
discussed here , the Securities and Exchange Commission's Asset
Management Unit has been investigating whether hedge fund managers overvalue
illiquid assets so as to generate higher management fees. Most recently, on
October 25, 2010, the SEC
charged hedge fund manager...
Lawrence Goldfarb, the manager of a successful hedge
fund, and the fund he managed, settled charges with the SEC and the U.S.
Attorney's Office stemming from his diversion of over $12 million from a side
pocket investment of the fund. Investors knew that the assets had been placed
in the side...