SEC Says "Socially Responsible" Hedge Fund Manager Is Fraud

On May 13, 2010 a press release hailed the arrival of Steven Zoernack and a “Socially Responsible Hedge Fund.” Nearly six years later the fund, now the subject of a Securities and Exchange Commission investigation, is mired in controversy. Socially responsible hedge fund manager took out nearly $1 million in unauthorized withdrawals Perhaps the first tell in the initial press release might have been claims of above average performance with little risk. “EquityStar’s equity long/short strategy will aim for returns of 25-35% while attempting to keep volatility between 7-10%,” the release noted, a significant divergence from actual long / short…