The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Guarding against hedge fund fraud

The SEC is pursuing more and more hedge fund abuses. It hopes that requiring managers to register, as passed by the regulator on October 26, will eradicate the problem. It won't. Investors need to see independent valuations.

Risk managing the black box

"I'M SO TIRED of the lies right now that I could scream. I'm not a good liar and my mom always said it made my ears turn red," laments Charles L Harris, principal of hedge fund Tradewinds International.

When the performance of 43-year-old Harris's hedge fund headed south he made a decision that would not only change his and his family's lives for ever but also those of all of his investors.

When he realized that he had no other choice than to come clean, Harris made a DVD recording in July 2004 asking his investors to treat him with compassion and permit him to continue his efforts to try to recoup their lost money.

He also admitted that he had taken investor money offshore. The recording in which he confesses to being a pitiful liar shows him on a boat, presumably the $481,000 62-foot yacht listed in his assets, probably anchored somewhere in the Caribbean.

Tradewinds International LP was created by Harris in 1996 and was run from his home and an office in Winnetka, Illinois. It invested in currency, bond and equity products.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree