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.
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.
A Bridgewater spokeswoman had no immediate comment but on Thursday the firm told Institutional Investor that Grant’s reporting “is devoid of proper fact checking, lacks a basic understanding of the rules, regulations and processes of the securities industry, and is demonstrably false.”
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