NEW YORK (HedgeWorld.com)– Guaranteed Returns Diversified Inc., which calls itself “one of the world’s leading operators of hedge funds,” on its web site isn’t real. It’s part of the Securities and Exchange Commission’s investor education program.
GRDI’s assertions seem to be a parody of all the misleading claims that a fraudulent money manager might make.
“Based in the Wylshock Islands in the Indian Ocean, with 68 offices worldwide, we’ve been making money for sophisticated investors for more than 18 years,” reads the introduction to the fabricated GRDI story. The firm alleges that it manages 17 hedge funds, many now closed to new investors, and has US$765 million under management.
GRDI tickles investors’ fancy by saying it has achieved almost 40% annual returns over 18 years and is now launching a new fund, GRDI Select, expected by some publication called “Stock Market Report” to return 22% in the first quarter after launch and 32% thereafter.
What Your Peers Are Reading
“Be sure to read the ‘you can get scammed!’ page,” Lori Schock, special counsel to the director in the SEC office of investor education and assistance, advised in a message. That page pops up when you try to submit an application to invest.