|A medium-security facility at Butner|
The manager of the mostly mythical Bayou funds said hedge fund investors should investigate before they invest:
Seek as much transparency as possible. If they do not understand exactly how a manager is making money, do not invest. If there is a secret process that cannot be explained, run. Go see the organization yourself, talk to the employees. The manager cannot see everyone or he could not be making money; if he has all the time in the world for you, that is a flag.
Good advice, but unlikely to stop investors for stumbling into the next Bayou. Sam Israel's approach, short-term trading of stocks, sounded simple enough. Who knew his accountant was as fictitious as his returns?