Hedge Fund Focus

FinAlternatives has broken a story about a potential fraud at the very popular porn hedge fund – Priapus Investment Fund. The fund, managed by AdultVest Inc., has reportedly been “looted” by its manager Francis Koenig. According to a source, the article quotes:

“There is almost no money left in the fund,” the investor, who said he was privy to some of AdultVest’s financials via a court order, alleges. “Koenig has an American Express black card through the company that he uses on partying, girls and high living. Most money is missing and iPorn.com is not worth what he says it is.”

The article goes on to question whether the fund’s major asset, the domain www.iporn.com, is appropriately valued. Valuation is always an important issue for investors in a hedge fund and will depend on what the hedge fund’s offering documents state. If this story gets legs we should expect the SEC to investigate. Any news breaks will be reported here. For the full story from FinAlternatives, please click here.