Providers of managed account platforms are reporting a “spike” in enquiries in the past month as hedge fund investors scramble for a safer way of investing in an asset class that suddenly looks more like a minefield. (PDF)

The sorry Bernard Madoff saga, and a number of smaller alleged frauds that have since emerged from the woodwork, have shone a light on the dangers of allowing lightly regulated managers to hold assets in a manner that cannot be verified by outside observers.