Ruthless Secretive and Sometimes Seedy World of Hedge Fund Private Investigators

The day after Paul Singer’s hedge fund, Elliott Management Corp., disclosed it had increased its stake in aluminum-parts manufacturer Arconic to more than 10 percent, its private investigators hit the pavement. But the Kleinfeld case remains an important example of the extreme lengths private investigators or researchers working for hedge funds — as well as their opponents — may go. “We literally have found children out of wedlock,” he says, relaying the time an investigator found that a hedge fund activist seeking a board seat on his client’s company had fathered a child, then 16, out of wedlock — and that his wife did not know.

Source: www.institutionalinvestor.com