Shmuel

Lesson Learned from Madoff's Ponzi Scheme

I am not convinced that the two suggestions offered are realistic: delaying the reporting of hedge fund actual holdings will compromise the strategic edge that contributes to fund performance - hardly something to blab out; and expecting investors to keep quiet about the nature of the fund's investments (even with a signed contract) doesn't sound possible. From my perch, it seems that the lesson learned from Madoff is for investors NOT to invest with someone just because other prestigious investors have done so. The "old boys club" is over.