Monday, December 15, 2008

Due Diligence

But you forgot to look inside the magical money box!

Dec. 15 (Bloomberg) -- Tremont Group Holdings Inc., a hedge- fund firm owned by OppenheimerFunds Inc., had $3.3 billion invested with Bernard Madoff, according to a person familiar with the matter.

Tremont’s Rye Investment Management unit had $3.1 billion, virtually all of its assets, invested with Madoff, said the person, who declined to be identified because the information is private. Tremont had another $200 million invested through its fund of funds group, Tremont Capital Management.

“We believe Tremont exercised appropriate due diligence in connection with the Madoff investments,” the company said in a statement.

Nice work!!