Over the Hedge

March 8, 2007

The risk checklist for hedge fund investors keeps growing:

  • Fabricated performance – check
  • Manager runs off with fund capital – check
  • Leveraged bets blow up because something that normally doesn’t happen in the market does – check
  • Market neutral strategy turns out to be market spiral – check
  • Buy on weakness philosophy turns out to be double down – check
  • Manager turns out to be a complete nut – gulp!

According to regulators, a successful hedge fund manager tried to draw a slightly more disturbed individual out of the internet woodwork to attack his ex-girlfriend.

A wealthy New Canaan hedge fund manager posed as his former mistress and posted an Internet ad seeking someone to rape and abduct her, authorities said.

Albert Hsu, 43, who was arrested Friday, pretended he was the woman in an Internet ad that indicated she was a willing participant in a sexual fantasy, prosecutors said Monday.

The ad included the woman’s photograph, her home and work address, license plate number, which train she takes to work and which car she usually sits in, authorities said."