I can tell you one of our investors is also an investor in a Quadriga fund. He recently reinvested with them after having been out for about a year. He has been very happy with Quadriga.
The SEC filed a civil fraud complaint in Manhattan federal court charging Beacon Hill Asset Management "provided false or misleading information to investors" to hide "massive portfolio losses." http://biz.yahoo.com/rf/021107/financial_fund_hedges_1.html http://biz.yahoo.com/ap/021107/sec_hedge_fund_1.html
The problem with mutual funds is that the entire business model is based upon bringing in new money. That's right, ITS A SALES BUSINESS. Mutual funds only make money by constantly bringing in the excess wages of average workers, otherwise they would go broke.
The problem with Hedge funds is that it is too damn easy to commit fraud or gross negligence. In my opinion, every major hedge fund collapse has been the result of either fraud, or gross negligence. The hf's that are well managed never even make it into the popular press.