Financial Times FT.com

Fund plans third-party checks

By James Mackintosh

Published: March 1 2009 23:34 | Last updated: March 1 2009 23:34

DE Shaw, one of the largest US hedge funds, plans to appoint independent administrators to provide third-party checks that its investments exist, in an effort to reassure investors panicked in the wake of the alleged $50bn Madoff fraud.

The move by DE Shaw comes amid a growing clamour from hedge fund investors for more use of independent administrators, already standard in Europe but rare among US funds.

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