$7.5 billion "fund of hedge funds" was merely a Madoff marketing vehicle.

Discussion in 'Wall St. News' started by wilburbear, Dec 18, 2008.

  1. Fairfield are history. They will be inundated with lawsuits plus their actual (real) FoF business is dead with the Madoff story.

    They didn't just have one fund. They had Fairfield Sentry = Madoff vehicle with 7.5bln. This was a feeder fund (collecting money from unsuspecting poor SOBs for % fees).

    Then they had a couple other funds of funds (non Madoff funds) that were probably legit businesses but rest assured they are getting 100% redemptions on everything they manage right now.
  2. WOW...what a complete SCAM!!!!
  3. http://clusterstock.alleyinsider.com/madoff-victim-elie-wiesels-foundation-for-humanity

    I suppose you get lower than this, but I'll be damned if I can see how.

    Remember whenthis broke, people said, "Oh this can't/won't be that big'.

    Bloomberg reported they count it at 30bb, and you know it'll just grow from here. But what do you do with 50bb. Even if he took huge losses, they'd show up. He had to ship it offshore.

    Amazing. 30 to 50 bb gone. Nuts.
  4. Nattdog


    my guess is that a huge portion of the 50b in losses is made of of the bogus return on investment. It is a loss on a gain that in fact never existed.
  5. Surdo


    If he paid out 8-10% a year PLUS FEES...and never invested the money, what the fuck you think is gonna happen to the money?

    There are still like 10 reporters and cameramen in front of his building, I walked by earlier.

    SCUMBAG with a capital "S"!
  6. gaj


    surdo - madoff, the funds of funds who invested with him, the reporters, or all of the above?

  7. ipatent


    You think he never invested it? Doubtful. It was likely laundered in complex illicit counterparty transactions.

    We will never know where it went, but we can guess. There will be clues, like what ultimately happens to BM.