In hindsight, many have suggested that the purported huge returns racked up Bernie Madoff were simply too good to be true. That was the largest of the red flags. The SEC has taken the lesson to heart with its fairly new Aberrational Performance Inquiry, a initiative of the enforcement division’s asset management unit that uses “proprietary risk analytics” to evaluate hedge fund returns. Simply put, if the reported returns look fishy, the SEC will open an investigation. Read Fierce Finance report here.
