By Neil Wilson
As noted before in this column, the growth of the hedge fund
industry in Europe has - hitherto - been remarkably
scandal-free. This contrasts starkly with the United States,
where there has been an ongoing series of blowups and frauds -
with such egregious cases as Manhattan, Lipper, Lancer, Beacon
Hill, Durus, Bayou and Wood River continually cropping up and
keeping the media filled with bad news about hedge funds. But
there has always been the risk that, as the industry in Europe
grew, problems would sooner or later emerge there, too. And in
recent weeks, with the remarkable goings-on at Absolute Capital
Management, a hedge fund management company publicly listed on
the Alternative Investment Market (AIM) in London, it looks
uncomfortably like we have our first such scandal.
The recent extraordinary sequence of events arguably began
with the abrupt resignation in September of Absolute...