There was another line of defense between most institutional investors and Bernard L. Madoff Investment Securities LLC investment consultants.
Prominent alternatives consultants that recommended clients stay clear of Madoff-related strategies include Cambridge Associates LLC, RogersCasey LLC, Albourne Partners Ltd., Aksia Ltd. and Segal Co.
Aksia Chief Executive Officer Jim Vos and head of client services Jake Walthour, in a letter to clients, said that the firm published extensive reports on several of the feeder funds which allocated their capital to Madoff (Investment) Securities. Our decision not to recommend these feeders was never based on the existence or discovery of a smoking gun; however, there were a host of red flags, which taken together made us concerned about the safety of client assets should they (be) invested in these feeders. Consequently, every time we were asked by clients, we waved them away from the Madoff feeder funds.
Simon Ruddick, Albourne's chief executive, said Albourne researchers have assumed a low-key profile post-scandal, rather than crow about being proven right after 10 years of recommending clients steer clear of Madoff investments.