Hedge fund blowup or ponzi scheme?
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How many hedge funds blew up in the last 12 months? How many of these supposed blow-ups were to really disguise carefully crafted ponzi schemes? How easy would it be to tell investors that you simply made some bad bets rather then telling them that you stole their money?
If you are someone like Neiderhoffer, then I guess its better to be thought of as a fool then a crook.