Following the mutual fund market-timing scandal, a lot of brokers and hedge funds - especially those implicated - have been assiduously staying away from strategies that involve mutual funds, but some are back in the game. One hedge fund market timer has set up shop under a new name and is back in the business of using mutual funds as part of a hedge fund strategy.

Mark Arnold, managing member of Kismet Capital Advisors, once managed a $100 million market-timing hedge fund called Atlantique Capital Advisors, according to AG Edwards recently got in hot water over market-timing trading for hedge funds, including Atlantique.

Now, Kismet has a new hedge fund called Corneille Fund, managed by Frederick O'Meally, who had been investigated by regulators for market-timing activity while he was a broker with Prudential Financial. O'Meally is now appealing to some of his former brokerage clients with a strategy that invests in mutual funds, derivatives and futures in an international arbitrage scheme that does not jump in and out of the funds. Instead, it "has profiled a group of international mutual funds, which it intends to hold perpetually."

The tiny fund, which has netted less than $10 million from investors, is noteworthy primarily because of the storied history of its managers.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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