Monday, August 20, 2007
Evidence of Smart Money ?
I am often emailed about being too critical of the hedge fund valets and private equity funds I have taken to task in this blog. The crux of which is that I am jealous and spiteful. On the contrary, nothing could be further from the truth. The are many outfits out there that are shrewd and savvy investors. The kind you and I would be lucky to have manage our money but they in the very small MINORITY and are few and far between. I am outspoken regarding the other 85% specifically due to the perception out there regarding their acumen and/or infallibility. I have listened to the institutional conference calls, the questions, oh those well thought out questions and the comments, the look at me I know something about this too comments. It is with much experience that I have come to this conclusion. Lowest common denominator ! A note to all those teachers who told us time and time again that there is no such thing as a dumb question, you never listened to those calls or you would never have made such a statement!
A rising tide lifts all boats rings so true as many of these funds employing ultra leverage make significant gains only to implode the minute things change. I went through this countless times with former customers who chased performance and confused it with acumen. I used to ask them to consider HOW the return was accomplished. My grandfather counseled me that you do not learn the worth of your skipper, physician or pilot till you are faced with adversity. Whether it be athletics, business, or life, truer words have not been spoken.
I now present further evidence, the Aegis failure and Cerberus actions of shutting down health benefits prior leaving many without Cobra. Please read the article, t is worth your time. And you will know understand why I read the last rites to Chrysler when Cerberus bought them. Good trading to you all.