LoL
Who are Bernie M. wannabes?
#FinalJeopardy
From what I have read, it doesn’t go to the same extent as Madoff of falsifying trades and records to claim false profits. Instead, they have recorded unrealistic and outsized valuations for illiquid or closely held assets, like the energy company. I wonder if this is a problem for a lot of private equity or venture funds - especially those with long lockup periods. If something is not traded in a liquid market, how trustworthy are any of its valuations?
" “Platinum Partners purported to be a standard bearer in the hedge fund industry, reporting annual average returns of more than 17 percent since inception in 2003,” "
wonder who audited them
" Platinum has recorded some of the most impressive numbers in the hedge-fund world, double-digit average annual returns for over a decade. "
" Beginning around 2012, however, with some investors wanting their money back, Platinum began borrowing heavily. According to documents reviewed by The Wall Street Journal and people familiar with the firm, Platinum borrowed hundreds of millions of dollars, some of it at double-digit interest rates. "
The real question is if you pay old investors with new money, does it still count as alpha??
Jesus, it reads like their marketing team wrote this.
I can never understand how people could rip off their own friends, families, and communities. Makes me sick.
Ohai, that is a big concern for investors and is a big reason third party valuation shops have a role.
Also, hacksaw auditor. Just use a big 4
Looks like the Jewish mafia to me. Did you see these yids running this firm?
So, numi is going to prison?
Well, at this point in his career, numi is probably just senior enough to be the scapegoat who takes $20 million from the founder to admit the blame. So you never know.
Hedge funds and PEG’s are unbelievably cheap. Big 4 fees are too high for them.
Wait isn’t this a huge conflict of interest? The audit firm is paid by the company who has an intrinsic interest in hiding information? Seems like every sketchy hedge fund will just hire the worst and cheapest auditor that they can.
Its not like a big 4 audit means anything, big 4 are actually much worse when it comes to HF audits as they spend their whole time worrying about minor details and dont actually understand whats going on. You could drive a truck through one of their audits as long as you put the blinkers on when you turned.
Rothstein Kass used to be the best by far, sadly KPMG bought them up and is turning them into crap as well. For some reason big 4 want to audit a HF like a real company and it doesnt work that way. They can also squeeze more in fees out that way which is good for them. Verify assets, verify pricing, verify controls, done. Not sure why a hedge fund needs a statement of cash flows anyway
The email is what gets me. Idiots. Yet, people line up to give them their money.
wait, Numi is Jewish or Numi works at a Jewish Hedge Fund?
Actually, tons of funds use big 4. In this case, obviously pricing wasn’t verified and I have no idea what their valuation consultant was doing.