Notwithstanding the tragedy of this financial loss, I would like to make some factual observations.

1. Most hedge fund prospectuses, or offering memorandums, do in fact warn that investors could incur a total loss of capital.

2. Documents relating to some Madoff feeder funds contained additional warnings about assets being sub-custodied by the manager could be vulnerable to misappropriation.

3. Furthermore, most investors in Madoff feeder funds have in fact recovered varying percentages of their original investment, as the trustee, Irving Picard, basically "froze" the remaining assets and is redistributing them to investors according to various criteria. So its not accurate to suggest that most investors in Madoff feeder funds will have incurred a total loss of capital.