Don't let due diligence slip Bayou

For those who don't recall, Bayou Management's fraud used to be considered an "incredibly big" rip-off in the hedge fund world.  How far we've come in a few short years!

Few people outside a narrow range of experts are up to date on the litigation resulting from Bayou's liquidation.  However, this complex process has serious implications for those who suffered when someone else made off with their money, as well as anyone who invests in hedge funds today.

Here's the basic idea: Hedge funds are "partnerships" in a legal sense.  I'm no lawyer, so don't think I truly know what this means.  As a practical matter, however, this means investors are in it together, as partners.