CNNMoney.com- Amid a spate of allegations of fraud at hedge funds, a London-based firm has launched fraud insurance for investors.
Protean Investment Risks, a newly-formed company, from Monday is offering its Protean insurance product to wealthy individuals and institutions to protect their hedge-fund portfolios from any misrepresentation of assets, theft or other type of fraud by hedge-fund employees or directors.
Nathan Sewell, Protean’s founder and managing director, said the idea for the product came after he was approached by a private hedge fund investor who had been the victim of fraud at Lancer Management Group.
Greenwich, CT.-based Lancer Management collapsed in 2003 and the manager of its funds was charged by the U.S. Securities and Exchange Commission of defrauding hundreds of investors.
