This seems like a pretty big news story, the reason why the ES futures are down 10 in afterhours. I'm not familiar with these guys, but according to the news reports they are a big stock market maker and the fraud is in the "billions". Anyone with more info?
Printed very steady returns in every kind of environment, with a huge asset base. A few people I know have viewed it as a ponzi scheme for a long, long time.
Yea well when I got the presentation maybe about 18 months ago it was for something they called the split strike strategy which basically was buy a S&P collar against a portfolio of stocks. They said it only executed once in awhile like 5 or 6 times a year. They raised all the $$ through marketers and you couldn't meet a pm or Madoff. I met a risk control guy from some office in Bermuda. The returns were low a few double digit years but a long track record and well established with a lot of fof. $20B seems right. They said Madoff securities was one of the largest otc market makers and the managed money was only part of their business. I had never heard of him before.