Although too early to say definitively, it is hoped that direct repercussions (i.e., Investments) by Australian hedge funds, fund of funds and other local investors in former US "Investment Guru" Madoff's so called "Ponzi" scheme will be minimal.
As of 15th December, two local Fund of Funds, Everest, and Select/Gottex have categorically denied having any investment or exposure to Madoff's extraordinary US$50 billion fraud.
However, there is no doubt that further confidence will be eroded in the eyes of ordinary investors in the top end of town, with this scam following on a series of disasters involving both overseas and local former high flying names.
Equally expect the surveillance of unregulated funds (a greater issue in the US than Australia) by the authorities to increase significantly.
