On May 13, 2010 a press release hailed the arrival of Steven Zoernack and a “Socially Responsible Hedge Fund.” Nearly six years later the fund, now the subject of a Securities and Exchange Commission investigation, is mired in controversy. Socially responsible hedge fund manager took out nearly $1 million in unauthorized withdrawals Perhaps the first tell in the initial press release might have been claims of above average performance with little risk. “EquityStar’s equity long/short strategy will aim for returns of 25-35% while attempting to keep volatility between 7-10%,” the release noted, a significant divergence from actual long / short…
SEC Says "Socially Responsible" Hedge Fund Manager Is Fraud
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.