According to industry lawyers, forensic accountants and former prosecutors, the Madoff investors missed some red flags. But other investors saw the warnings and steered clear of the prominent 70-year-old Madoff, who had a loyal following among the country club set in Palm Beach and New York. Now at best, the fund of hedge fund managers who promised to spread investors' risk for a heavy fee by vetting a handful of individual funds, will have trouble wooing new clients. At worst, some may fail. A fund of hedge funds is a basket of funds selected by the manager to spread around risk. "Any person who has taken on a fiduciary responsibility and may have allocated significant amounts of money to Madoff or his direct affiliates will materially suffer reputational damage," said Ron Geffner who works with many hedge funds and investors as a partner at law firm Sadis & Goldberg.   more »