Fraud cases do more good than harm to the industry’s reputation


These two legal and regulatory decisions should give comfort to anyone with an interest in the long-term health and reputation of the industry

By Nick Evans

May was not a great moment for the perception of the hedge fund industry in Europe, for reasons other than performance too. In the space of two days came news of regulatory and legal judgments in relation to what appear to have been two of the most clear-cut and egregious frauds ever conducted by hedge fund managers in London.

One is Dynamic Decisions, whose manager – an Italian university finance professor – seems to have completely lost the plot. The other is Weavering, whose principal’s main approach to compliance seems to have been to surround