US SEC shows off first results of new analysis programme

Robert Khuzami at the US SEC

Enforcement officials at the US Securities and Exchange Commission (SEC) say four new cases brought this month are the first fruit of a new project aimed at identifying suspect behaviour at hedge fund advisers by analysing their published returns.

The Aberrational Performance Inquiry (API) will detect several forms of irregularity, says Robert Kaplan, co-chief of the asset management unit in the SEC's enforcement division. "Bad behaviour includes over-valuation, abuses, misreporting of strategy