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Benedicte Gravrand, Opalesque Geneva:

For investors in the failed Weavering hedge fund, the recent outcome of the civil case in the UK does not guarantee they will have much of their money back. Indeed, the liquidation process is still going on – and according to an investor, this lengthy process is letting the liquidators profit from significant fees, while leaving investors uncertain as to whether they will recover much at all.

According to an investor in the Weavering Macro Fixed Income Fund Ltd, who does not want to be named, the litigation against Magnus Petersen, the founder of Weavering, is the tip of the iceberg.

The two reputable independent service providers of the Weavering Fund, PNC and Ernst & Young (E&Y), failed to protect the interests of the investors and have deep pockets to compensate for their failure. They have not been successfully brought to court yet. The real scandal, the investor told Opalesque, is not only that a hedge fund manager defrauded his clients but also that the administrator failed to identify the wrong signals and protect the investors.

It is important to note that the Fund was sending the interest rate payment of the swaps to the manager, and the administrator did not consider this to be a red flag. In addition, the pricing of the swaps and the lack of their documentation raises serious concerns about the way PNC and E&Y operate. This unveils the real risks of investments in offshore funds. The lack of registratio......................

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