More on that 50 billion dollar
Ponzi Scheme:
The $7.3 billion Fairfield Sentry Fund invested solely with Madoff, taking a cut of 1 percent of assets and 20 percent of gains, which averaged about 11 percent annually in the past 15 years, according to data compiled by Bloomberg.
As Duncan Black
observed:
I've seen some around the internets ask why people would invest in a fund which did little other than invest in another fund and take a cut. The only reason is because you're paying them to do due diligence.
Due diligence indeed! I wonder to what extent was Madoff floating his fund- has he been doing it for the last 15 years or was it an ad hoc measure?
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