Early yesterday on the news of Arthur Nadel’s disappearance, I searched our database to ensure that none of his funds were listed on our database. The funds in question are:
- Valhalla Investment Partners, LP
- Viking Fund, LLC
- Viking IRA Fund, LLC (source)
These funds were added to our database in 2005, but quickly removed after doubts to their credibility – The note that was left on the funds by Andrew Schneider follows:
08-31-2005 – removed over concerns about the credibility of funds, the numbers are gross and not net, self administered.
In a following interview with New York Post, Andrew explains further:
Andrew Schneider, managing partner of hedge fund Internet forum HedgeCo.Net, said he tossed Nadel’s funds from his Web service in 2005 after Nadel failed to produce up-to-date audit records. Schneider said he asked for the audit records after noticing that Nadel’s performance figures looked “too good to be true.”
Schneider was also uncomfortable that Nadel’s firm acted as its own administrator, giving itself control over things like daily fund accounting, he said.
This once again brings self-administered funds into the light. Back when the Madoff scandal broke, Bob Pisani rounded it up pretty well.
Self-administered funds are in big trouble. There’s no doubt self-administered funds will have a tougher time getting money. Indeed, one of the biggest problems with Madoff was the apparent lack of independence in the back office–in accounting, administration, and record keeping. No one will invest in firms that are self-administered in the future. The good news is that probably less than 15 percent of U.S.-based funds were self-administered.
About Aaron Wormus
Aaron Wormus works as the Managing Director of Website Creation at HedgeCo Networks and has worked with HedgeCo since the end of 2004.
Prior to working with HedgeCo Networks, Aaron managed a private consulting firm based in Frankfurt, Germany. During this time he worked implementing back-end systems for clients ranging from telecommunications companies to mining companies and Silicon Valley software distributors.
Aaron Wormus is a published author who has studied Information Technology and Journalism in Finland. His written work has been published in various technology magazines, translated into 5 European languages, as well as published book. Aaron regularly speaks at PHP Programming conferences, and is involved in the organization of his local technology user group.
Andrew Schneider on Nadel Funds
Early yesterday on the news of Arthur Nadel’s disappearance, I searched our database to ensure that none of his funds were listed on our database. The funds in question are:
These funds were added to our database in 2005, but quickly removed after doubts to their credibility – The note that was left on the funds by Andrew Schneider follows:
In a following interview with New York Post, Andrew explains further:
This once again brings self-administered funds into the light. Back when the Madoff scandal broke, Bob Pisani rounded it up pretty well.
About Aaron Wormus
Aaron Wormus works as the Managing Director of Website Creation at HedgeCo Networks and has worked with HedgeCo since the end of 2004. Prior to working with HedgeCo Networks, Aaron managed a private consulting firm based in Frankfurt, Germany. During this time he worked implementing back-end systems for clients ranging from telecommunications companies to mining companies and Silicon Valley software distributors. Aaron Wormus is a published author who has studied Information Technology and Journalism in Finland. His written work has been published in various technology magazines, translated into 5 European languages, as well as published book. Aaron regularly speaks at PHP Programming conferences, and is involved in the organization of his local technology user group.