Hedge Fund Fraud

A hedge fund is a private investment limited partnership that generally invests in a variety of securities. The name itself can be misleading, as hedge funds may or may not employ hedging techniques. Hedge funds are not subject to the same SEC rules and regulations under which mutual funds operate, and generally have more flexibility in handling investor funds.

In recent years, investors have increasingly utilized hedge funds for portions of their portfolio. This tremendous increase in activity, together with a lack of government regulation, has made the hedge fund landscape particularly vulnerable to abuse by unscrupulous money managers.

Investors should conduct due diligence before choosing a hedge fund, and carefully monitor their monthly or quarterly statements on a regular basis. If you believe that you have been a victim of hedge fund fraud , contact the attorneys at Singer Deutsch LLP for a consultation about possible remedies.

Click here to view PDF version of Michael C. Deutsch's article that appeared in the 2007-2008 Holiday Issue of C & K Magazine entitled "Memo to the Hedge Fund Investor" .