The hedge fund? Wrong. I have those returns too. Ever wonder why neither he nor anyone talks about his returns? It’s not a conspiracy...
It is insane to me. We detest more than anything the notion of the high fee hedge fund manager who gets rich while his clients lose money, but the world gives Chanos the biggest pass of all time. This is a guy who has made something like $1 billion pre-tax and pre-divorce while his fund has just lost copious amounts of money over any relevant time frame.
Fund managers are just scammers - plain and simple. He loses his clients money, he makes money. He earns his clients money, he makes more money. Either way he wins. It’s all sales and bullshit.
This was not a hedge fund, it was a family office, a vehicle he chose after his last hedge fund blew up in 2013 and he was fined for fraud. He chose a family office probably because the disclosure requirements are not as arduous as hedge funds, then he lied to lots of banks about his exposure to ramp his own stocks multiple times by buying on margin with multiple partners, till it seems the banks found out and the last banks out were left holding the bag.
Classic doubling down on failed leverage and classic signs of the massive bubble in financial assets about to implode.
Hedge funds trail index funds? What a hilariously and confidently incorrect take.
I guess that's why hedge fund managers have billions in assets and are paid millions of dollars, to deliver sub-market returns. Yep, makes total sense.
"Hedge fund manager Kenneth C. Griffin made $1.7 billion"
"Mr. Griffin’s firm, Citadel, has grown from a hedge fund that managed family and pension fund money into a $25 billion firm"
"Citadel’s flagship Kensington and Wellington hedge funds returned 14.3 percent over 2015."
It might be true but seems incredible, that would mean he personally took 6.8% of the entire fund's capital as a salary. Not salary of course but carried interest - he only has to pay capital gains tax rate because Wall street.
It's interesting timing to post this, since the New Yorker explored the data available on hedge funds' returns just yesterday, and found them lacking...
It is insane to me. We detest more than anything the notion of the high fee hedge fund manager who gets rich while his clients lose money, but the world gives Chanos the biggest pass of all time. This is a guy who has made something like $1 billion pre-tax and pre-divorce while his fund has just lost copious amounts of money over any relevant time frame.
reply