Fairfield Greenwich Group Pitch Documents
Massachusetts is the latest to file suit against the Fairfield Greenwich Group (FGG), one of the principal “feeder” funds for the now-infamous ponzi scheme of Bernie Madoff (pictured). Mass regulators are alleging a “profound disparity” between FGG’s alleged and actual due diligence on Bernard L. Madoff Investment Securities LLC, the broker-dealer that implemented the mystical “split strike conversion” strategy (which everyone now realizes is similar to the more common “liquor store holdup” strategy).
In light of Massachusetts allegations of “profound disparity,” I wanted to share some of the FGG pitch documents (links below) that a friend forwarded to me a couple of months back. This is from a FGG pitch in October 2008 for their Fairfield Sentry, Ltd. fund (yes, “sentry” like “guard”) and it is full of some now-fascinating quotes, such as:
• “[FGG seeks] a more transparent understanding of risk from all managers . . . for FGG portfolio analysis and risk monitoring.”
• “Value Added by FGG: Independent verification of prices and account values”
• “Value Added by FGG: Systematic investment compliance monitoring of Operating Guidelines”
• “Value Added by FGG: Examination of option greeks to make sure the hedge is working as expected”
• “The services of [Bernard L. Madoff Investment Securities LLC] and its personnel are essential to the continued operation of the Fund, and its profitability, if any.” (emphasis provided)
Admittedly, I am not close to the case; but it feels like shooting fish in the Massachusetts barrel. Here are the pitch documents so you can form your own opinons. We shall see.
FGG Sentry Fund Pitch Powerpoint
FGG Strategy Description
Sleep with one financial eye open.
Mark
