The FBI and securities regulators joined the investigation of Arthur Nadel, the Florida hedge-fund manager who disappeared five days ago, leaving clients concerned they may have lost hundreds of millions of dollars.
Officials from the FBI and the US Securities and Exchange Commission are helping on the case, Sarasota Police Lieutenant Stanley Beishline said yesterday in a telephone interview. One of Nadel’s business partners, Neil Moody, said Nadel had spoken to his wife since taking off.
Nadel, 76, is president of Scoop Management Inc in Sarasota, which oversees funds including Valhalla Investment Partners LP. He was reported missing on Wednesday after he called his stepson, Geoff Quisenberry, and told him to go to his house where he had left a note, Lieutenant Chuck Lesaltato of the Sarasota County Sheriff’s Office said.
Nadel’s wife, Peg, and Quisenberry, were concerned about his welfare, Lesaltato said. Nadel had sounded distraught, Lesaltato said, citing the note. Beishline said he believes Nadel is alive.
“I think he is, at least until a couple of investors find him,” Beishline said in an interview.
Scoop may have managed as much as US$350 million, although that may be high because performance results were exaggerated, Moody said in an interview. He said he contracted with Nadel to manage three funds on his behalf, while Nadel alone had three others and did the trading for all six. Moody said he didn’t know anything was wrong until Nadel was reported missing.
Moody called his broker and “the amount did not jibe with what Mr Nadel said we had.”
“As much as US$12 million of the Moody family money may be lost and how much remains is not known. It looks very bleak,” Moody said.