Hedge Funds

Spitzer probe fails to deter Millennium clone

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What does a hedge fund manager do when faced with lawsuits and a regulatory investigation - and the newfound capacity that accompanies widespread investor redemptions? If you're Israel Englander, it appears that you launch a clone of your highly successful flagship fund and raise hundreds of millions in short order.

According to investor sources, Millennium has raised about $300 million for its clone which many new investors see as a chance of tapping into Englander's high-flying Millennium Partners returns without the liability of the possible lawsuits relating to New York Attorney General Eliot Spitzer's mutual fund timing scandals.

Fears