SocGen studies hedge fund fraud to reduce risk


Société Générale (SocGen) is attempting to improve the security of its hedge fund investments by completing empirical studies of the risk of fraudulent hedge funds.

A recently completed paper by the bank, entitled A too-good-to-be-true metric, seeks to identify the hedge funds most likely to be fraudulent by a variety of statistical analyses. Andrew Szymanski, vice-president and hedge fund analyst at the bank's hedge fund risk team, says the bank's work was driven by the need to reduce the risk