To hedge-fund investors, those red flags still look green

Troubles at Atlanta Hedge Fund Snare Doctors, Football Players, The Wall Street Journal reports. Which proves that wealthy doctors and millionaire footballers are just as colorblind as investors in various other hedge funds, like Bayou, that now exist only in painful memory.

Fund manager Kirk S. Wright said he generated returns of 27% per annum, the Journal notes:

In hindsight, there were many red flags at International Management: unusually consistent high returns, vague descriptions of investment strategies, aggressive marketing, no auditing, and secretive behavior by the manager. The firm's demise comes as hedge funds, which are lightly regulated investment vehicles for institutions and wealthy investors, face new SEC registration requirements that have stirred a debate about how much oversight is necessary.

Elsewhere in the news today, it was reported that a new miracle drug might cure those addicted to gambling. Do you suppose hedge-fund investors could negotiate a discount if they offered to buy the stuff by the case?