Hedge funds, especially activist hedge funds, are established users of private-investigation services. Sometimes simply paying an investigator to go through publicly available information can yield valuable leverage in an investment. The hedge-fund investor Daniel Loeb, of Third Point, exposed misrepresentations on the résumé of Scott Thompson, the C.E.O. of Yahoo, who subsequently resigned. But some private-investigation firms or consultants will do much more for a well-paying client. “There are thousands of tiny shops out there, run by former C.I.A. operatives, MI6 guys, former Mossad people, or people on the fringes, who bring the tactics that they learned in the intelligence service to the investigative and corporate world,” the head of a boutique investigation firm told me. “Smaller players who will do whatever it takes.”
Here is the Sheelah Kholkatkar piece (New Yorker), via Hugo Lindgren.