Jim Grant Issues Mea Culpa After Bridgewater Disputes Claims on CallBy , , and
Newsletter editor apologizes on CNBC for Oct. 6 report
Top executives of hedge fund held call with investors Friday
Jim Grant, editor of Grant’s Interest Rate Observer, said he made mistakes in a report last week on Bridgewater Associates in which the newsletter criticized the firm for possible conflicts of interest and lack of transparency.
“Bridgewater is a secretive and eccentric firm,” Grant said in an interview on CNBC on Friday. “I let my suspicions of that get in the way of our ordinarily comprehensive due diligence at Grant. I regret that.”
Grant made the televised comments after Bridgewater’s top executives held a conference call with investors Friday to dispute assertions in the Oct. 6 issue. David McCormick, the firm’s co-chief executive; Greg Jensen, the co-chief investment officer and Helene Glotzer, the chief compliance officer were on the call. The firm told investors that Grant’s would be issuing a correction and an apology.
Grant said he was wrong to question the firm’s relationships with auditor KPMG and Bank of New York Mellon Corp., and the lack of prime brokers for many Bridgewater funds. On their call, the Bridgewater executives said Grant’s claims were wrong, said a person familiar with the discussion.
“We appreciate his apology and have nothing more to add,” Bridgewater said in a statement.
— With assistance by Simone Foxman