Mar
19
“Do not invest in a fund where the fund manager has access to your assets. Ok – that needs a little explaining but its not complicated. If – as an American - you invest in Bronte Capital you don’t give us the money. We are not even legally allowed to take it. You send the money to Citco. Citco is the world’s largest hedge fund outsource company – but there are alternatives. David Einhorn’s Greenlight Capital uses one of the bigger banks. There are smaller players such as Spectrum, Conifer and others. When you send the money to Citco they hold the assets. We just trade them by issuing instructions to brokers. However if we asked Citco to send the money to our personal bank account they would (rightly) refuse. Moreover Citco value our assets every month and they – not us – send the statements to the clients. We don’t do the valuation so we can’t fake it. We don’t hold the assets so we can’t steal them.”
Bronte Capital: Danger danger: The Wall Street Journal has no idea on how to do hedge fund due diligence
