Fund Of Hedge Funds Wishing It Invested In Paper Shredder In Addition To Madoff Feeder Fund
By![By rpongsaj (Flickr) [CC BY 2.0], via Wikimedia Commons](https://dealbreaker.com/uploads/2017/03/safe-300x225.jpg)
By rpongsaj (Flickr) [CC BY 2.0], via Wikimedia Commons
Randall Dillard, Jeff Holland and Ben Funk had a secret: The founders, head of research (respectively) and owners (collectively) of fund of hedge fund Liongate Capital Management hadn’t invested with Bernard Madoff, exactly, but then they hadn’t not invested with him, either, putting $18.5 million of its $2 billion into a little operation called Fairfield Sentry, which proved to be the largest Madoff feeder fund around. Luckily, they also had the only evidence: A pair of files locked securely in their safe in London.
Three years after Madoff’s arrest, the Liongate trio were in talks to sell half the firm to Principal Financial Group, and during those talks, the arch-fraudster’s name happened came up. Liongate’s IR manager assured Principal that the firm “was never invested in Madoff,” which was of course both true and not true, but then laid it on a little thick by offering “to explain the obvious reasons as to why Madoff was not an appropriate investment for any prudent fund of hedge fund or finance company.”…
Fund Of Hedge Funds Wishing It Invested In Paper Shredder In Addition To Madoff Feeder Fund
