Oops.
Dec. 16 (Bloomberg) — Tremont Group Holdings Inc., a hedge- fund firm owned by OppenheimerFunds Inc., had $3.3 billion, or more than half its total assets, invested with Bernard Madoff, according to a person familiar with the matter.
Tremont’s Rye Investment Management unit had $3.1 billion, virtually all the money the group managed, allocated to Madoff, said the person, who declined to be identified because the information is private. Tremont had another $200 million, or about 7 percent of its total assets, invested through its fund of funds group, Tremont Capital Management.
The kicker here — Tremont received an average 1.25 per cent management fee — above the circa 1 per cent typically charged by funds of funds, according to today’s FT. Funds of funds are of course, paid by clients to “do due diligence on hedge funds and allocate money among approved managers.”
Related links:
Madoff feeder funds levied high fees – FT
Tremont invested more than half its assets with Bernard Madoff – Bloomberg