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SocGen studies hedge fund fraud to reduce risk

French bank completes statistical study on statistical properties of fraudulent funds

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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

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