Posts filed under “Hedge Funds”
This weekend, I found myself in the rather unusual position of defending hedge funds. Before I explain why that is so unusual, allow me to explain what I was defending them against.
Last week, Forbes released its annual score card of top-earning hedge fund managers. The usual gang was there: Soros, Tepper, Cohen, Paulson, Icahn, Simons, Dalio, Griffin, et. al. That clickbait scorecard — it worked on me — and led to a strident column from Gawker, bizarrely titled “Fund Managers Are the Biggest Gangsters of All.” Noting that the top 25 managers made a combined $24.3 billion in 2013, Gawker concluded, “The biggest thugs of all operate fully within the law.”
Which is completely and utterly wrong. The real gangsters were the “Banksters” who helped bring down the economy in the financial crisis, along with their lapdogs in Washington. To literally talk my own book, “Bailout Nation“: If you want to see truly thuggish behavior, look at three decades of radical deregulation, plus a gutting of enforcement mechanisms.
Source: Bianco Research This month, 1,865 pages of FOMC transcripts from 2008 were released to the public. Bloomberg studied the transcripts, finding on average about 25 references to laughter per meeting of the Federal Open Market Committee. This was almost half of the 45 giggles per FOMC meeting in 2007. Continues here
“The $2.5 trillion hedge-fund industry, whose money managers are among the finance world’s highest paid, is headed for its worst annual performance relative to U.S. stocks since at least 2005. The funds returned 7.1 percent in 2013 through November, according to data compiled by Bloomberg. That’s 22 percentage points less than the 29.1 percent…Read More
Josh here – the other day I did a post about the amazing complexity and obsession with tail risk that’s caused so many professionally-managed investment pools to miss the market over the last few years (see: I don’t understand). Every general fights the last war, as they say, and a portfolio geared toward having a…Read More
Every now and then, I read an article that is factually accurate, technically correct — and utterly misleading. Items like this are “accurate but false” as they leave the reader with an impression of something that is incorrect. Because the world is nuanced and not black and white, the sum of many facts, statistics and…Read More