Rolling in it
| Nov 21st, 2006 | Filed under: Hedge Fund Industry Trends | By: Alpha Male |
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By: The Economist
Published: November 18, 2006
The Economist has been a willing participant in the tarring of the hedge fund industry for some time. However, this article marks a departure, in our opinion, from the magazine’s usual anti-hedge fund stance.
Still, the Economist obviously could not resist taking the usual jabs:
“There is an old Wall Street story that can be adapted for the modern world of hedge funds. A young hedge-fund trainee is taken to the harbour. ‘Here’, says his boss, ‘are the partners’ yachts. And over there are the yachts of the bankers who lend to us.’ The naive youth replies: ‘But where are the customers’ yachts?’”
And, as usual, the story goes on to draw on several other stereotypes: some managers making over $1billion (like, one), multiple fee layers (like any other value-chain), “astonishing” growth (like most new industries), a reliance on “past data” (as opposed to “future data”?)
But mixed with the usual beefs are several signs that the Economist is coming around. They throw the hedge fund industry a few bones:
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