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"...tell you they have a "tiny" hedge fund already worth 500 million and they can give you a return on your investment within one year, and in 5 they’ll be wort
by KonaB 17y ago
"...tell you they have a "tiny" hedge fund already worth 500 million and they can give you a return on your investment within one year, and in 5 they’ll be worth a few hundred BILLION. Oh, and if they fail the Fed will bail them out so there’s no risk."
As far as I know, the Fed did not directly bail out any hedge funds, except those internal to big banks. The last 2 years were a blood bath in the hedge fund world, with hundreds of shops closing down. Zed's text is amusing, but it does not reflect reality all that accurately.
Last but not least, I have never heard of a hedge fund worth hundreds of billions. A 1-billion fund is common, but hundreds of billions? When Jim Simons of RenTec started talking of a 100-billion hedge fund in 2006, everyone was so excited...
- rbranson 17y agoYou might not be familiar with Zed's writing, but the level of sarcasm is very high in his posts, to the point of just plain falsehood. Take it all with a grain of salt.
- FooBarWidget 17y agoHaving met him personally, I am 100% confident he's telling the truth, at least from his perspective.
- cellis 17y ago"...and tell you...in 5 they’ll be worth a few hundred BILLION." To be fair, i think he qualified this very well. He's talking about suited down 6'4" finance pros wining and dining clients.
- va_coder 17y ago"As far as I know, the Fed did not directly bail out any hedge funds" The big banks invest in hedge funds
- KonaB 17y agoSo do pension funds. The word directly is there for a reason.
- steveplace 17y agoHedge funds have no direct protection from the federal government. If someone can find me a direct example of a cash infusion into a fund, please let me know, but there is no evidence. However, they did indirectly benefit from some other government voodoo such as bailouts of AIG and others, but it wasn't exclusive.