Service providers feel the heat

FRAUD | ANGRY INVESTORS LOOKING FOR COMPENSATION

DUBLIN -- Hedge fund service providers are being targeted by angry investors who lose money as a result of hedge fund fraud, says Harry Davis, partner at New York-based law firm Schulte Roth & Zabel. By the time a fund collapses, investors are looking elsewhere for compensation and are unlikely to blame their own lack of due diligence for the failure, Davis told the IBC Hedge Fund Administration and Prime brokerage Conference in Dublin last month (February).

This is dangerous for service

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