Nation of suckers
There's a sucker born every minute, says the old
cliche, but who knew that so many of them were so rich? Consider the following
anecdote from the Wall Street
Journal.
"Last spring, investors gathered in a hotel in
Garden City, Long Island…to meet hedge-fund managers looking to raise
money. A throng of more than 200 people piled into one conference room and
spilled into the corridor. Inside sat Eric Mindich, a 37-year-old former Goldman
Sachs hotshot with no hedge-fund experience. According to two people who
were there, Mr. Mindich didn’t divulge details about his trading strategy
and acknowledged he hadn’t managed money for several years. In a low
monotone, he said those permitted to invest would have to pony up at least $5
million, pay stiff management fees, hand over 20% of investment profits and tie
up their money for as long as 4 1/2 years or pay a big penalty. The response:
Where do I sign? Two months ago, Mr. Mindich launched his fund, Eton Park
Capital Management, with more than $3 billion in assets committed by investors.
People in the clubby world of hedge funds think that’s the largest launch
on record.”
It will be curious to
find out what giant liquidity toilet all that money will eventually gets flushed
down!
Posted: Mon - January 17, 2005 at 02:44 PM