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What do I do to make you want me
What have I got to do to be heard
What do I say when it's all over
And sorry seems to be the hardest word
-- Elton John and Bernie Taupin
Hedge fund investors are getting a taste of just how hard it is to say sorry this week. According to The Wall Street Journal, hedge funds are sending letters to their shareholders with explanations for the huge draw-downs: Other hedge funds (crowded trades), computer models, once-in-a-blue-moon aberrations, etc.
Be sure to read The Journal's piece for some examples of wonderful wordsmithing. Yes, their job was to make money for investors, and they expect to be rewarded handsomely if they succeed. But if they lose money? Why, don't blame them! This appears to be a case of "Heads I win, tails is bad luck" in action.
Suppose the not-my-fault hedge fund managers are right. Maybe it isn't their fault. But if they aren't responsible for bad times, do they really deserve the huge performance fees they earn when it goes well?
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Reader Comments (Page 1 of 1)
8-16-2007 @ 9:35PM
theTmanxkl2 said...
CHUCK SCHUMER TODAY PROPOSED LEGISLATION TO ALLOW FANNIE MAE AND FREDDIE MAC TO EXTEND THEIR ABILITY TO GUARANTEE FAULTY LOANS(ON TOP OF WHAT THEY ALREADY HAVE IN THEIR PORTFOLIO) THOUGH THIS IS A MOVE THAT SAVED THE STOCK MARKET TODAY ON RUMOR, IT IMPLIES THAT THE CONGRESS AND SENATE WILL HAVE TO SCRUITNIZE THE WORKINGS OF FANNIE MAE AND FREDDIE MAC AND TO ENSURE THAT THE AMERICAN PEOPLE WILL NOT BE RESPONSIBLE FOR ANYTHING BEYOND THE 2.25 BILLION CREDIT WHICH THEY RECIEVE DIRECTLY FROM THE GOVERNMENT IN THE EVENT OF CATASTROPHIC FAILURE. THAT IS TO SAY THE AMERICAN PEOPLE MUST NOT BE RESPONSIBLE FOR ANY FAILING LOANS OF FREDDIE MAC OR FANNIE MAE. PERIOD. IF THERE IS A QUESTION ABOUT THE MAGNITUDE OF THEIR LIABILITIES NOW IS A GOOD TIME TO DETERMINE WHAT THESE ARE AND TO FREE THE AMERICAN PEOPLE OF ANY PENDING LIABILITIES. HILLARY CLINTON MUST BECOME FULLY AWARE OF THESE MATTERS AS WELL AS THE REST OF THE PRESIDENTIAL CANDIDATES. THE LAST THING WE CAN AFFORD IS FOR FREDDIE MAC OR FANNIE MAE TO BECOME THE LIABILITY OF THE AMERICAN PEOPLE FOR IN POINT OF FACT THEY ARE NOT LEGALLY OBLIGATED IN TO DO SO, BUT THESE MATTERS MUST BE AFIRMED BY THE JOE BIDEN HILLARY CLINTON BARRACK OBAMA KUCINICH , CHUCK SCHUMER AND THE REST. NO ONE SHOULD PULL A FAST ONE ON THE AMERICAN PEOPLE.