You might have seen Sandra Manzke on TV in the last few weeks. The Maxam Capital fund-of-funds manager has been on a crusade to reform the hedge fund industry. Among her bill of complaints: The 2 and 20 fee structure needs to be changed and fund managers are abusing their ability to restrict redemptions. These criticisms sound reasonable, but there are a lot of angry wealthy investors that have been burned by alternative investments — get in line.
Anyway, she missed that the biggest fraud around was lurking in her own portfolio. CNBC says Maxam has cash with Bernie Madoff. We wonder how someone so concerned with hedge fund abuse could ignore a fund that people have been warning about for years. Then again, who’s going to make waves about a fund that was actually up this year?
Here’s a video of a recent Manzke performance.