Andrew Lahde, the hedge-fund manager who quit after posting an 870 percent gain last year, said farewell to clients in a letter that thanks stupid traders for making him rich and ends with a plea to legalize marijuana.It's amazing that like a sewage treatment plant, politicians and the Smartest Guys In The Room are nothing more than floaters.
Lahde, head of Santa Monica, California-based Lahde Capital Management LLC, told investors last month he was returning their cash because the risk of using credit derivatives -- his means of betting on the falling value of bonds and loans, including subprime mortgages -- was too risky given the weakness of the banks he was trading with.
"I was in this game for money," Lahde, 37, wrote in a two-page letter today in which he said he had come to hate the hedge-fund business. "The low-hanging fruit, i.e. idiots whose parents paid for prep school, Yale and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government."
Friday, October 17, 2008
In a sewage treatment plant, guess what floats to the top?
I've never heard of Andrew Lahde. I wish I had paid closer attention. He could have made me a lot of money from this fiasco.
Posted by Lou Minatti at 10:38 PM