Times Online - Hedge fund managers are paranoid. And they are right to be. The other day I had lunch with a senior financial official whose view of hedge funds was simple. “They were a con. The returns were all due to leverage. And now that the leverage has gone everyone will see they were […]

Seattle Post- Incriminating messages allegedly sent by two ex-Bear Stearns Cos. hedge fund managers indicted on fraud charges that even sophisticated professionals disregard the dangers of putting sensitive information in e-mails, ex-prosecutors said.
Ralph Cioffi, 52, and Matthew Tannin, 46, were charged last week with misleading investors by saying two funds were thriving while knowing subprime-mortgage […]

Reuters - Pictures of hedge fund managers in handcuffs being led away to face fraud charges on Thursday have sent a chilling message to the $2 trillion (1 trillion pound) industry.
The warning was clear: mind what you say in your e-mails if you are a manager and do a lot of due diligence if you […]

Bloomberg- Bank of America Corp. agreed to sell its prime brokerage unit that serves hedge funds to BNP Paribas SA, France’s biggest bank, for as much as $300 million after profit at its investment bank tumbled.
BNP Paribas’s purchase price includes some goodwill, Todd Steinberg, head of equities and derivatives in Paris-based BNP Paribas’ Americas unit, […]

Bloomberg - Value Partners Group Ltd., Asia’s second-largest hedge fund manager by assets, said worsening returns in the industry may lead to bigger firms taking over smaller rivals.
“I think the industry may go through certain consolidation,” said Chief Executive Officer Franco Ngan in an e-mail. “Our company is financially strong and will keep an […]