Forbes – A fund of hedge funds offers its investors the chance to pay high fees in return for an investment strategy that provides broad exposure to the hedge fund industry in an effort to diversify risk. But this strategy doesn’t work so well if many of the hedge funds selected for the portfolio turn out to be either Ponzi schemes or fraudulent.
Chetan Kapur, a manager of a formerly $500 million fund of hedge funds, was accused on Thursday by the Securities & Exchange Commission of deceptive conduct in a civil complaint filed in federal court in Manhattan.
