the great hedge fund bust of 200X

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Tom, you've actually reminded me I need to talk to my insurance agent -- with my pay increase(s) coming along I want to increase the investments a bit, but cautiously.

― Ned Raggett (Ned), Friday, 26 May 2006 17:18 (seventeen years ago) link

the economist cover this week says it all!

― TOMBOT (TOMBOT), Friday, 26 May 2006 17:27 (seventeen years ago) link

mitya otm. this is not probably something the average schmoe needs to worry about.

― hstencil (hstencil), Friday, 26 May 2006 17:38 (seventeen years ago) link

Certainly not in the sense that our worry would make any difference in the outcome.

― Aimless (Aimless), Friday, 26 May 2006 17:49 (seventeen years ago) link

The main danger that I see is that if banks have not exercised proper caution in setting credit limits and margin requirements. Most of these hedge funds are fueled by credit - it was the credit aspect that caused the LTCM crisis to reach the stage that the Fed felt obliged to intervene. Hopefully banks have learned from that incident, and proper controls are in place.

― o. nate (onate), Friday, 26 May 2006 17:52 (seventeen years ago) link

I do know no small-time investors participate in these funds. Therefore it is easy to think that only billionaires will be hurt if a few big hedge funds go belly up.

This isn't true any more - a lot of funds now offer the small investor the opportunity to invest in hedge funds.

― Crimea River (Mark C), Friday, 26 May 2006 20:21 (seventeen years ago) link

well it just seems like as the market gets more crowded with hedge funds and they're all looking for competitive advantage, there's a lot of potential for recklessness. like that times column says, "not everyone is a genius and not everyone is truly hedged." and it's not just billionaires either, a lot of institutional investors, pensions and so forth, are in the game too. also as they become larger -- and more aggressive -- holders of publicly traded companies, they're also going to have more influence over them. which could obviously be good or bad -- a lot of companies could use some shareholder insurrection, but otoh as always with corporations what's in the interest of the hedge funds might not be what's in the interest of employees, customers, etc.

i don't know, obviously there are real stars who have really performed and made themselves and their clients fabulous dough. but there can't be that many stars, and the whole thing has long since started to sound like the latest get-richer-quicker.

― gypsy mothra (gypsy mothra), Saturday, 27 May 2006 02:17 (seventeen years ago) link

i dunno how smart it is putting loads of yer money in foreign equity, TOMBOT. i think that certain foreign markets (read: ASIA!) are overheated themselves. and european markets threaten to give a good whipsaw to novices. and, IIRC, one of things that did in LTCM (besides intellectual arrogance) was that their "hedge" was russia -- which promptly tanked in 1998 or thereabouts.

investing seems to be one of those pursuits where corny indie fuXor contrariness may be a GOOD thing -- if loads of financial blabbermouths are talking about something (like hedge funds, or overseas markets), then it's a good thing to be VERY CAUTIOUS.

personally, i plan on stashing lotsa cash in a money market the next few months (mainly for reasons that have nothing to do w/ market volatility, though that appears to be serendipitous). and if my funds drop, say, 10%, them shits is also getting converted to money markets.

― Eisbär (llamasfur), Saturday, 27 May 2006 06:35 (seventeen years ago) link

not to be an evangelist, but seriously -- read anything by benjamin graham (i.e., the dude who tutored warren buffett!) and fuck jim cramer -- that jerk is the bill o'reilly of the investing world.

― Eisbär (llamasfur), Saturday, 27 May 2006 06:37 (seventeen years ago) link

investing seems to be one of those pursuits where corny indie fuXor contrariness may be a GOOD thing

coming soon: indievesting: keeping yr money cool. from soft skull press.

― gypsy mothra (gypsy mothra), Saturday, 27 May 2006 21:05 (seventeen years ago) link

one year passes...

Funny:

WORD PROBLEMS FOR FUTURE HEDGE-FUND MANAGERS

― o. nate, Thursday, 8 May 2008 17:01 (fifteen years ago) link

one year passes...

when is 200X supposed to happen if it doesn't happen before 2010?

http://i48.tinypic.com/w9z43b.jpg

― iiiijjjj, Saturday, 2 January 2010 18:41 (fourteen years ago) link

that's what i wanna know

― iiiijjjj, Saturday, 2 January 2010 18:43 (fourteen years ago) link

six years pass...

lol at anyone investing with this guy http://www.bloomberg.com/news/articles/2016-07-26/the-curious-case-of-joseph-meyer-a-little-giant-of-hedge-funds

― just sayin, Wednesday, 27 July 2016 05:51 (seven years ago) link

loool

― woke-ing class zero (s.clover), Wednesday, 27 July 2016 06:48 (seven years ago) link

Jeff Roberts, who runs a real-estate appraisal company in Asheville, North Carolina, says he met Meyer in 1989, while the two were at First Union. They became friends after Meyer, wearing jeans and a T-shirt, turned up one day in a Ford pickup to give Roberts a lift. A 12-pack of Budweiser rested on the front seat. Roberts says he’s invested several hundred thousand dollars and Meyer has been great.

― El Tomboto, Wednesday, 27 July 2016 12:44 (seven years ago) link

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