Friday, December 19, 2008

Economic Sounds: Madoff Was Magnet For Some, Not All, Investors- Audio from NPR

Madoff described his system as a split strike conversion strategy?

New York Law School invested some money with Madoff, and now is preparing a lawsuit against this money manager. In this broadcast, Millicent Holmes discusses the concerns she had about Madoff's system a few years ago, and her surprise at how long it took regulators to go after Madoff after an article in Barrons brought up doubts about his system's methods.

Listen to the interview.

On-line article

MAR/Hedge no.89 May 2001 "Madoff top charts; skeptics ask how" (pdf) (Michael Ocrant)

Barron's 5/7/2001 Article about Bernie Madoff: "Don't Ask, Don't Tell"

SMF Blog Post: Don't Ask, Don't Tell: Barron's 2001 Madoff Article

"....But Madoff's investors rave about his performance -- even though they don't understand how he does it. "Even knowledgeable people can't really tell you what he's doing," one very satisfied investor told Barron's. "People who have all the trade confirmations and statements still can't define it very well. The only thing I know is that he's often in cash" when volatility levels get extreme. This investor declined to be quoted by name. Why? Because Madoff politely requests that his investors not reveal that he runs their money."

From the Wall Street Journal Online documents:

The World's Largest Hedge Fund is a Fraud
pdf (11/7/2005 Submission to the SEC)
Suggests that Madoff Securities "is the world's largest Ponzi scheme".

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