Even when, in 2017, internal auditors uncovered red flags, they assigned product specialists whose pay was tied to the group’s performance to follow up.
Tournant and Taylor worked together well over a decade ago when they were at Structured Alpha’s predecessor, Options Management, which had a similar strategy. After that firm failed during the financial crisis, they regrouped and were eventually acquired by Allianz, with its global brand and vaunted internal controls.
Investing in Structured Alpha, Tournant assured investors, was “very, very different than if I had my own hedge fund firm where in some form or fashion I can overrule just about anything.”
This article was provided by Bloomberg News.