Wed, Nov 26, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund that accepts Bitcoin raises questions

Thursday, February 20, 2014

Bailey McCann, Opalesque New York:

On Friday, FinAlternatives posted a short piece on New York-based "hedge fund" NYSO Hedge. The firm made news for its announcement that it will start taking subscriptions in Bitcoin, the popular crypto currency that has already seen significant speculative investments and drawn the ire of regulators. Regulators that take a quick walk through of the NYSO Hedge website may well find additional ammunition for their skepticism about Bitcoin and this firm.

Starting just with the visuals, the website itself is a website in a can created from a template service. That would be fine, until one starts to read closely and notice a variety of red flags. Hedge fund is typed as a single word. Multiple violations of the laws governing the hedge fund industry abound including "client" testimonials, headed by stock photos. Valuewalk pointed readers to the dubious claims that the fund is no risk. The website does in fact point this out in the same breath that it notes taking on more leverage is what removes said risk.

Perhaps this website can be explained by the fact that the fund says its services are governed by the rules of the Independent Financial Regulatory Authority, and not the SEC or FINRA. The website for IFRA points to a domain th......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  2. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  5. Gross: Inflation is required to pay for prior inflation[more]

    Benedicte Gravrand, Opalesque Geneva: As inflation rises, every dollar will buy a smaller percentage of a good. While deflation will mean a decrease in the general price level of goods and services. These two economic conditions are both in the waiting room. The consensus would like the former to