Hedge funds Leave the red tape alone

There has to be something wrong with any hedge fund that mislays $440m of client money. To that extent, there’s clearly something wrong with Bayou Management, the US hedge fund whose assets seem to have disappeared. There are some obvious lessons to learn from this latest scandal to hit the industry. One is that investors should not rely on hedge funds to audit themselves. Another is that hedge funds should not do business with their own broker-dealers. But the case does not necessitate fresh...