Hardly a day goes by without another report of a hedge fund manager disappearing, a broker jumping out of a plane and faking his death or a hedge fund closing with virtually zero assets. As Warren Buffett says, when the tide goes out we find out who is wearing a bathing suit and who isn't.

More frauds, Ponzi schemes and Roach motel-funds are almost certain to surface in the coming months, according to a report conducted by Morningstar for Politico.com, which found that 27 hedge funds with no reputed connection to Madoff claim to have avoided a single down quarter in the last five years. Sounds a little dubious to many.

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