John Gabelli, the brother of famous money manager Mario Gabelli, may be the latest victim to come to light in Bernie Madoff’s Ponzi scheme. At least one fund managed by Gabelli’s Manhattan Partners, an investment company he founded in 1987, had at least 50% of its money with Madoff, according to a person familiar with the matter.
The investors in the Manhattan Partners funds exposed to Madoff are described by a former employee as group of relatively small individual investors that were lumped together to be one big Manhattan Partners account. The money was invested with various managers, including Mario Gabelli and Madoff.
The losses to the fund are said by the person to be around $25 million.
Mario Gabelli reportedly also lost money in Madoff’s scheme through investments with Tremont Partners. John Gabelli could not be reached by Clusterstock.