The "expert network" insider trading probe has ensnared some big-name hedge funds and mutual funds--the likes of SAC Capital, Citadel, Janus and Wellington Management. This is something competitors see as an opportunity.

Quantitative funds in particular think a marketing opportunity has been handed to them, Fortune reports. They have an interesting product story to tell as the investigation unfolds. These guys, after all, do not use new-age independent research or traditional research. They rely on their computer-driven models, so they are virtually immune to these sorts of scandals--or so they say.

Larger hedge funds and funds of funds also have an interesting pitch: they have highly developed compliance departments that make illegal insider trading much less likely. This has been a marketing point for a while for some firms. But it's nothing like a little scandal to inject a bit of urgency into their message.

It's unclear whether the unfolding scandal will lead to massive outflows at the firms cropping up in the headlines. My sense is that the the investigation has not plunged the industry into any sort of crisis. But firms will be under pressure to have a good story when it comes to compliance and third-party administration. The big investors are certainly receptive to best practices and will smile on those who can convince them they take it all seriously.

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