Patrick McCarty Hedge Fund Roundtable Presentation via SEC

SEC Hedge Fund Roundtable May 14-15, 2003

Panel 6: Enforcement/Fraud Concerns

Patrick McCarty

General Counsel, Commodity Futures Trading Commission

Facts And Figures

  • 18 of the Top 25 Hedge Funds* are Operated by CPOs
  • 55 of the Top 100 Hedge Funds are Operated by CPOs
  • 44 of the Top 100 Hedge Funds are registered with the CFTC as CTAs

Patrick McCarty Hedge Fund Roundtable

CFTC Pool Case Picture: The Last 5 Years

  1. Vast majority of the 54 cases involving commodity pools/CPOs are unregistered pool cases (78%)
  2. Most involve outright misappropriation of investor funds (sometimes without any futures trading)
  3. Typically, fewer than 50 participants (though has reached 250)
  4. Typically, less than $10 million invested (though has reached $140 million)

Patrick McCarty Hedge Fund Roundtable

See full presentation below.