A provocative article on Hedge Funds in the current edition of Forbes - it's the cover story. Your thoughts, please.
http://www.forbes.com/business/forbes/2004/0524/110.html
http://www.forbes.com/business/forbes/2004/0524/110.html
Provocative Cover Story on Hedge Funds in current Forbes Magazine
- Thread starter CPTrader
- Start date
Funny 
"If you believe what Wall Street says, hedge funds thrive because they make eminent investment sense for the rich and savvy. "Hedge funds are right for a person with lots of assets who can deal with the downsides," says David Darst, chief investment strategist for Morgan Stanley's individual investor group. George Herbert Walker, a second cousin of the President and head of Goldman Sachs' alternative investment strategies group, adds: "Sophisticated institutional investors have torn apart the hedge fund business. They've read or written the studies and know exactly what they're investing in."
But hedge funds are a hotbed of questionable behavior, whether at blue-chip Wall Street firms or at fly-by-nights. Two youngsters and a 53-year-old assistant literature professor at a small college in New York formed a hedge fund, JB Stanley, and lost most of the $400,000 they raised from 15 investors. They siphoned off the rest for car payments, ATM cash withdrawals and other personal uses, according to SEC claims that led to a summary judgment against the three managers. "
That's what I said in fact :
"benchmarks headed for extinction- long live absolute returns? "
http://www.elitetrader.com/vb/showthread.php?s=&postid=469245&highlight=hedge+and+fund#post469245
"If you believe what Wall Street says, hedge funds thrive because they make eminent investment sense for the rich and savvy. "Hedge funds are right for a person with lots of assets who can deal with the downsides," says David Darst, chief investment strategist for Morgan Stanley's individual investor group. George Herbert Walker, a second cousin of the President and head of Goldman Sachs' alternative investment strategies group, adds: "Sophisticated institutional investors have torn apart the hedge fund business. They've read or written the studies and know exactly what they're investing in."
But hedge funds are a hotbed of questionable behavior, whether at blue-chip Wall Street firms or at fly-by-nights. Two youngsters and a 53-year-old assistant literature professor at a small college in New York formed a hedge fund, JB Stanley, and lost most of the $400,000 they raised from 15 investors. They siphoned off the rest for car payments, ATM cash withdrawals and other personal uses, according to SEC claims that led to a summary judgment against the three managers. "
That's what I said in fact :
"benchmarks headed for extinction- long live absolute returns? "
http://www.elitetrader.com/vb/showthread.php?s=&postid=469245&highlight=hedge+and+fund#post469245
Quote from harrytrader:
I don't agree : Berstein belongs since very long to Wall Street Establishment and at each crisis touching fund managers performance - since it is nothing new - he is very good opportunist to make people think that he has a solution to lower risk and inccrease perf for example with a fund that would manage risk and perf according to the new Black & Scholes "super formula". So Wall Street make them the "new era" of no-risk whereas risk just come the fact that it is a zero sum game. So not only this would not change anything in fact with the multiplication of hedge funds that has now become a NEW FASHION propagated by WALL STREET themselves - why didn't you hear such idea before huh if it was so evident ? - my best guess that they will cause the Next Big Major Crash in Stock Market as the more leveraged the market is the more systematic risk there is.
They pretend to democratise Hedge Funds, this makes me laugh: since when Wall Street Managers want to make people win money : it just eat their cake haha ! So it's rather a new way to get the money earned by the middle of the pyramid now that the base of the pyramid has been washed out by the previous bubble, that is to say the so called "rich" risk this time to be really touched when the risk will materialise. And it will because that's how money is extracted and benefits materialise in the pocket of the Wall Street organisers. This industry is an organised syndicate of Crookery and you will make me believe that all of a sudden they decided to become all Saints, what's the probability that their nature has changed tell me
That's my opinion and summarised before by
The next great hecatomb: the hedge funds
http://www.elitetrader.com/vb/showthread.php?s=&threadid=30656&highlight=Hecatomb
Oh no, people need to be compensated for their stupidity these days. Maybe we can start a Hedge Fund Victim's Fund, and sock away the proceeds in a bank account and pay ourselves director salaries.
Don't they run this story every few months with a different headline?
October 2003
http://www.forbes.com/2003/10/02/cz_mm_1002hedge.html
September 2003
http://www.forbes.com/premium/archi...RL=/forbes/2003/0929/110.html&_requestid=6071
Seems to me they had another big story like this in 2001/2002...but their archive doesn't go back that far.
Yawn.
October 2003
http://www.forbes.com/2003/10/02/cz_mm_1002hedge.html
September 2003
http://www.forbes.com/premium/archi...RL=/forbes/2003/0929/110.html&_requestid=6071
Seems to me they had another big story like this in 2001/2002...but their archive doesn't go back that far.
Yawn.
Doesn't matter : he beats the record of the youngest poster to be in my ignore list
He said it: I'm french. Like Prince Philippe and others their true motive is clear. I'm more and more switching to another forum.
Like with terrorists a minority suffices to disrupt a democracy. Baron can't do much I admit, in fact he has been great to try to balance everybody but with some kind of individuals it's just impossible.
He said it: I'm french. Like Prince Philippe and others their true motive is clear. I'm more and more switching to another forum.
Like with terrorists a minority suffices to disrupt a democracy. Baron can't do much I admit, in fact he has been great to try to balance everybody but with some kind of individuals it's just impossible.
Quote from manz66:
You just join ET, why are you hounding Harry?