So, we, along with much of the media haven’t done much on Arpad Busson, vis-a-vis Bernie Madoff. He, like Fairfield Greenwich, too, was a feeder fund to Madoff—his company EIM, is an $11.5 billion fund-of-funds.
And Arpad certainly is larger than life, just like the Walter Noels. He’s pretty much the definition of that old Candace Bushnell-ian term “Modelizer.” He’s the father of two children with Elle Macpherson and is engaged to Uma Thurman. This 45 year-old “French-born child of the European financial aristocracy” is friendly with Madonna, Hugh Grant, and Bill Clinton.
He’s not so modest, by the way.
Bloomberg: Reflecting his near iconic status in the hedge fund world, Busson appeared as one of the gods floating in the clouds in “The Art of Hedge,” a sequence of drawings and silkscreens by London artist Adam Dant, which hung in a Mayfair gallery in 2007.
Bloomberg pretty much wrote one long biography on him and on feeder funds today. An excerpt.
…[Busson]started his career as a high-priced matchmaker, pairing new-world hedge fund managers with old-world money. He parlayed that into a fund-of-funds business that’s paid off handsomely. EIM’s funds gained an annual average of 12 per cent from 1996 to 2007, and his wealth was estimated before the crisis by London’s Sunday Times at 250 million pounds ($390 million).
Guest-of-a-guest blog was particularly interested in that number 12, by the way, as 12% was Ezra Merkin/Ascot’s lucky return number too, and not too far from Madoff’s. That blog speculates that Busson’s losses could be more Madoff-related, and therefore bigger, than the $230 million he lets on.
…”Catching a fraud is practically impossible,” Busson says. “There’s only so much due diligence you can do. This was not an obscure little manager in the boondocks. He seemed like a very experienced, knowledgeable, trustworthy man — like the best con artists always are..”…
…..”I knew the SEC was all over this shop,” Busson says. “The main reason we got comfort was that it was SEC-regulated.”
…The Madoff loss is by far the biggest of several EIM missteps. Busson says EIM had $9 million of client money invested in the Bear Stearns hedge funds that went belly up in July 2007, touching off the meltdown in mortgage-backed securities. Another EIM holding that was a casualty of the crisis was Drake Capital Management LLC, a New York-based money manager started by BlackRock Inc. executives seven years ago. Drake is liquidating three of its funds.
…Busson is now struggling to contain his clients’ losses as the global stock, bond and commodities meltdown slams the hedge fund industry and the funds of funds that depend on it
To Read The Entire Bloomberg Article Click Here>