Post Chronicle – U.S. securities regulators charged a prominent hedge fund industry executive on Wednesday with failing to properly review collapsed hedge fund Bayou Group before recommending that their clients invest.
Hennessee Group and its principal Charles Gradante, who runs the New York-based group with his wife, failed to research the hedge fund group as vigorously as promised, the Securities and Exchange Commission charged.
The news is a big blow to Gradante and the Hennessee Group, which established their reputation in the $1.3 trillion hedge fund industry by tracking funds’ returns, industry flows and creating portfolios for clients.
