Hedge Fund's Price Of Omission

So far, reported reaction from Mangan & McColl Partners investors has been minimal after news broke last week that half of the crew that steers the New York-based hedge fund is in eternal dry dock. The New York Post reported that investors received a regular update from the firm, but that it omitted any mention that co-founder John Mangan Jr. had settled improper trading charged with the NASD last month for $125,000, and agreed to be banned from the industry. The firm, according to the Post, refused to comment on client matters, though spokesman Steve Luquire did tell the paper that the firm "kept our clients informed and will continue to do so." For example, it did report to them that the fund finished 2005 at -2.10% after returning 107.78% since its inception in 1998. The firm also told the clients that it will opt for a two-year lockup period to avoid Securities and Exchange Commission registration. As for investors, if they're upset, you wouldn't know it from the press coverage, or lack thereof.