Quotes for All
I can’t figure out why anyone invests in active management, so asking me about hedge funds is just an extreme version of the same question. Since I think everything is appropriately priced, my advice would be to avoid high fees. So you can forget about hedge funds. Eugene Fama
Overwinding happens when hedge funds destroy companies by attempting to leverage derivatives against otherwise productive long-term assets. Douglas Rushkoff
When people ask me what I do for a living, I generally tell them ‘I run a hedge fund.’ The majority give me a strange look, so I quickly add, ‘I am a money manager.’ When the strange look persists, as it often does, I correct it to simply, ‘I’m an investor.’ Everyone knows what … Read more
California is no longer a state, it’s a hedge fund. Craig T. Nelson
There used to be corporations that produced products. Now there are just banks that produce deals, hedge-fund-driven banks and derivatives and those things. Cornel West
Hedge funds are investment pools that are relatively unconstrained in what they do. They are relatively unregulated (for now), charge very high fees, will not necessarily give you your money back when you want it, and will generally not tell you what they do. They are supposed to make money all the time, and when … Read more
I’ve heard that one-half of the students at elite schools want to go into private equity or hedge funds. They want to keep up with their age cohorts at Goldman. This can’t possibly end well in terms of meeting these expectations. Charlie Munger
I think the idea that the hedge fund manager gets lower taxes than the taxi driver or the physics professor is insane. The legislators who leave that policy in place are derelict in their duties to be rational and fair. There are plenty of them in both political parties. It’s totally outrageous. Charlie Munger
It’s my guess that something like 5% of GDP goes to money management and itsattendant friction. I define it broadly – annuities, incentive pay, all trading, etc. Nobody else has used figures that high, but that’s my guess. Worst of all, the people doing this are among the best and the brightest. Hundreds and thousands … Read more
The hedge fund known as Long Term Capital Management collapsed last fall through overconfidence in its highly leveraged methods, despite I.Q.’s of its principals that must have averaged 160. Smart people aren’t exempt from professional disasters from overconfidence. Often, they just run aground in the more difficult voyages they choose, relying on their self-appraisals that … Read more