According to CNN, wealthy hedge fund members no longer trust their own wealth- amassing vehicle. With allegations of hedge fund fraud on the rise, a newly- formed insurance firm, Protean Investment Risks is now offering insurance to wealthy individuals and institutions to protect their portfolios from any misrepresentation of assets, theft or other type of fraud by hedge-fund employees or directors.
This must be very reassuring to these ridiculously wealthy traders. But it does not address the most fundamentally flawed aspects of hedge funds. It is not generally their members they take to the proverbial cleaners with their shadow markets, questionable short sales, their pumping, and their bashing. It is the individual investor, the one who has no insider knowledge, no paid operatives, no way to see the blindside coming, who remains unprotected, while the hedge funds continue unregulated, and free to impose their will upon the market.
Veracity Jones