The Fundamentals of Hedge Fund Management, 2nd Edition

APPENDIX A

The Hedge Fund Industrya

Scott M. Berman

Scott M. Berman is a partner at Friedman Kaplan Seiler & Adelman LLP in New York City and represents large investors in securities and fraud litigations involving hedge funds and their auditors, administrators, prime brokers, and other professionals (e.g., Madoff feeder funds, Lancer, Beacon Hill, Lipper, Livingston, Granite, Manhattan). He also represents hedge fund receivers and liquidators (e.g., Carlyle Capital Corporation Limited (in liquidation) and Beacon Hill), as well as hedge fund investors in bankruptcy and receivership proceedings (e.g., Bayou, Wood River) and other matters (e.g., Amaranth). In addition to his litigation practice, Mr. Berman counsels hedge funds, funds of funds, and investment managers. He is frequently quoted in the financial press on hedge fund–related issues.

INTRODUCTION

Hedge funds, like all industries, are involved in commercial and employment disputes. However, areas of disputes and litigation are more specific to hedge funds, their managers, investors, and service providers. When a hedge fund collapses, claims may be brought by investors, a receiver or a Chapter 11 bankruptcy trustee, the Securities and Exchange Commission (SEC), the Commodities Futures Trading Commission (CFTC), the fund itself, or its investment manager. Claims may be brought against the fund, its investment manager, its auditor, its administrator, its prime broker, investors that redeemed their investments before a collapse, ...