Greenwich, Conn., is a major hub of the U.S. hedge fund
world, with a considerable number of the biggest hedge funds,
from Tudor Capital to ESL Investments, headquartered there.
Many of the firms' founders live in Greenwich as well, and
several send their kids to the same prestigious local private
schools, rub elbows at local charity dinners and brush past
each other on their early morning runs.
As they pound the pavement, they are likely to come across
another Greenwich resident and runner, Richard Blumenthal, who
is making waves in both the town and the hedge fund industry.
Blumenthal, the state's activist Attorney General, is miffed by
the meltdown of the hedge fund Bayou Management, which is
located in Stamford, Conn., one town over from Greenwich. A
number of recent fund failures and frauds certainly inspire
concern about whether there is sufficient disclosure and
oversight, he says. To make...