I Cannot Believe Pequot Capital Management Is Folding

[ByLoSellHi]

http://www.nytimes.com/2009/05/28/business/28pequot.html?_r=1&hpw

I can honestly now say that I've seen things in the last two years that I didn't think I'd see in my lifetime.

I always thought of them on the up and up.

 

[nazzdack]

Quote from ByLoSellHi:
.....I didn't think I'd see in my lifetime.

With a name like "that", it was only a matter of time before Moby Dick would destroy them.

 

[Ms Varima-Garch]

"In the rarefied world of hedge funds, he is one of the greats — a stock-picker who managed to make money, bull market or bear, for more than two decades.

But on Wednesday, Arthur J. Samberg told his investors that his long, successful run was over "

interesting, very interesting indeed . . . it was supposed to be forever, wasn't it ... or so some people thought . . .

Mr. Samberg said in a letter to investors on Wednesday. “With the situation increasingly untenable for the firm and for me, I have concluded that Pequot can no longer stay in business.”

if he can keep his fees, good for him. it means his business model works. i really like this structure, you shift all market risks on the investors, and if you blow up, keep the fees.

good, very good. no need to get euphoric, no need to day-trade, although you can, if you want to

good, stable source of cash (fees)

all this means is that trading is interesting, but you better have an independent, stable source of cash flow

Varima Garch

 

[flytiger]

Quote from ByLoSellHi:

http://www.nytimes.com/2009/05/28/business/28pequot.html?_r=1&hpw

I can honestly now say that I've seen things in the last two years that I didn't think I'd see in my lifetime.

I always thought of them on the up and up.

Given the Gary Aguirre saga, how can you say that? It is documented to a fault that he, and then Mack also, were suspected with cause of fraud and insider trading.

Guess who's next?

what's amazing is, he is nailed for insider trading and brags about his performance. Love it.

 

[Clubber Lang]

Quote from Ms Varima-Garch:

"In the rarefied world of hedge funds, he is one of the greats — a stock-picker who managed to make money, bull market or bear, for more than two decades.

It was easy for them to make money using inside information.

SEC should have shut him down and thrown him in jail ten years ago.

 

[Anaconda]

Quote from Clubber Lang:

It was easy for them to make money using inside information.

SEC should have shut him down and thrown him in jail ten years ago.

LOL so true. But they are too well politically connected. Now that's a great edge. Like this, http://en.wikipedia.org/wiki/John_J._Mack

 

[Ms Varima-Garch]

Quote from Anaconda:

But they are too well politically connected. Now that's a great edge

ha ha ha i would not be surprised if that was the ultimate edge, together with insider trading, of a good portion of wizards
from schwager's books (both books)

not saying this was the case, not trying to downplay their role, just guessing

the interviews sound convincing, though, "i did this," "then i did that," "i found this technique" "i found that technique", "i made my mistakes, then glory came", "this can't be tought" "this can be tought" . . .

hmmm, maybe it was a little more simple than that . . .. at least some of it is suspicious . .. maybe i'm wrong

 

[Greg Richards]

http://www.finance.senate.gov/sitepages/leg/LEG 2007/36960.pdf

The title is "The Firing of an SEC Attorney and the Investigation of Pequot Capital Management." 711 pages of it.

The payoff is on Pp. 44 and 45.

 

[Eric215]

This crap just keeps getting worse. These shady people have completely ruined the hedge fund industry. One cheat or crook every so often is part of the game, but every week it seems there is a new headline. These people have ruined it for everyone else. I actually hope that they begin to regulate this industry more so that it will bring back the confidence of investors, if that is even possible now. This has surly made it impossible to raise capital unless the investor is your brother or something. I mean who the hell can be trusted.

 

[flytiger]

Quote from Greg Richards:

http://www.finance.senate.gov/sitepages/leg/LEG 2007/36960.pdf

The title is "The Firing of an SEC Attorney and the Investigation of Pequot Capital Management." 711 pages of it.

The payoff is on Pp. 44 and 45.

How wonderful to see someone else post this stuff. Everyone is starting to see what we've been saying for years. But unfortunately, it looked so wacky, so off the wall, nobody believed it. They were doing too well. Oh, there is much more to come. So much more it is frightening. I don't know if I can ever be more frightened than I was in September. But maybe.

Now, as an exercise in, oh, Sociology, or Physcology, consider this.

Why did Samberg, Mack, the enforcement attorneys at the SEC......where did they all get the balls to do what they did? Would any of you leave such obvious paper trails that a child could trace? Of course not. Unless, of course, Daddy was the Chief of Police.

See where it goes next? Watch OBama destroy the SEC in its present form.

I do appreciate Bush 43 keeping the country safe. But what he did with Christopher Cox he should hang for. And i mean that literally. You kill a man, you take the life of one human being. You destroy the economy of a nation, how many do you kill.?? Just add up the suicides up to now.

And before Liberals start licking their chops, there are plenty of Dems to blame too.

We are Snafued, folks. All that's left is to get the perps, knock everything down, and start over.

PS. Aguirre has said, what really got him in the shit was when he got to "naked short selling". That's when he got canned. Now, put on your thinking caps, and tell me where this goes next.