Archive for hedge funds

The Greatest Financial Con of All Time

Posted in Uncategorized with tags , , , , , , , , , , , , , , on July 11, 2010 by highboldtage

“If the goal were to encourage “investing” while reining in the sort of speculations which “earn” hedge fund managers $600 million each (no typo, that was the average of the top 10 hedgies’ personal take of their funds gains), then all unearned income (interest, dividends, capital gains, rents from property, oil wells, etc.) up to $6,000 a year would be free–no tax. Unearned income between $6,000 and $60,000 would be taxed at 20%, roughly half the top rate for earned income. This would leave 95% of U.S. households properly encouraged to invest via low tax rates.

Above $60,000, then unearned income would be taxed the same as earned income, and above $1 million (the top 1/10 of 1% of households) then it would be taxed at 50%. Above $10 million, it would be taxed at 60%. Such a system would offer disincentives to the speculative hauls made by the top 1/10 of 1% while encouraging investing in the lower 99%.”

http://www.oftwominds.com/blogjuly10/con-of-decade-pt2-07-10.html

http://www.oftwominds.com/blogjuly10/con-of-decade07-10.html

http://www.oftwominds.com/blog.html

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Cerberus Hedge Fund Caps Withdrawals After Loss

Posted in Uncategorized with tags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on December 28, 2008 by highboldtage

New York (HedgeCo.Net) – Stephen Feinberg’s Cerberus Capital Management has followed in the footsteps of many faltering hedge funds this year, limiting client redemptions in one of its funds after investors moved to withdrawal 16.5 percent of their capital, according to a recent letter to investors.

http://www.hedgeco.net/news/12/2008/cerberus-hedge-fund-caps-withdrawals-after-loss.html

So long, suckers. Millionaire hedge fund boss thanks ‘idiot’ traders and retires at 37

Posted in Uncategorized with tags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on October 18, 2008 by highboldtage

So long, suckers. Millionaire hedge fund boss thanks ‘idiot’ traders and retires at 37

from the guardian.co.uk:

Andrew Lahde’s $80m Los Angeles-based firm Lahde Capital Management in Los Angeles made a huge return last year by betting against subprime mortgages.

Yesterday the 37-year-old told his clients that he had hated the business and had only been in it for the money. And after declaring he would no longer manage money for other people, because he had enough of his own, Lahde said that instead he intended to repair his stress-damaged health; he made it clear he would not miss the financial world.

“The low-hanging fruit, ie idiots whose parents paid for prep school, Yale and then the Harvard MBA, was there for the taking,” he wrote. “These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government,” he said.

“All of this behaviour supporting the aristocracy only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.”

Lahde became one of the biggest names in the investment industry when one of his funds produced a return of 866% last year, largely by forecasting the US home loans industry would collapse.