Axa Rosenberg clients 'betrayed' by co-founder

SEC press association
Securities and Exchange Commission, Washington

Clients of institutional money manager Axa Rosenberg lost $217 million because its co-founder "betrayed" them by concealing a computer error in the risk management element of its quantative investment model, according to charges brought by the US Securities and Exchange Commission (SEC) against Barr Rosenberg.

The quant manager concealed the error from clients for almost a year after learning of it in June 2009. Rosenberg instructed others within the company who knew about the error to say

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