Lahde Quits Hedge Funds, Thanks `Idiots' for Success

TheTrader Wrote: ------------------------------------------------------- > ymc Wrote: > -------------------------------------------------- > ----- > > Did he close his fund because he didn’t think > the > > banks have the cash to settle CDS that has > Lehman, > > WaMu, Icelandic banks, etc as reference > > entities??? > > > Nope. In a nutshell just got sick of the rat race > and got out at his peak. nothing wrong with that.

sounds bitter and tired. he is not the only person in the world to make a buck without a silver spoon. The sweetest victory is to walk away, not write a “haha” letter - very juvenile and insecure. how about some appreciation for the opportunities that were made available to him, or perhaps the good fortune of entering the hedge fund business at the right time. I am sure he is smart and diligent, but as with all highly successful people, luck is large element in their success, and they are totally oblivious to that fact.

I am one of those Ivy league suckers, but not the kind with rich parents who were born with a silver spoon in the mouth (financial aid kiddo). Lahde tars with a wide brush, but I must agree with his gist (not the marijuana part, I don’t know enough to form an opinion there). I was not wholly impressed with the aristocracy. They may be the aristocracy, but frankly my opinion is that they were pretty average in abilities, especially in non social abilities. I also learned pretty late in the game that getting the one or two prime job positions from financial institutions depended much more on who you knew, then on the one’s own merit. Picking from an average pool is going to lead to ho hum results. Hiring from Ivy league only nets a higher chance of getting a well connected person, but it may still be a good idea for the possible benefits provided. Lahde was pretty smart to avoide regression to the mean by bowing out early. The letter does seem like some premature bridgeburning, but despite all his hubris, ego issues, and his improper use of the CFA designation (read some of his earlier letters concerning mosaic theory), this is a pretty inspiring story of a CFA charterholder who became successful from outside the system. And yeah I would probably watch a movie on this if it was made.

I can confirm the marijuana part.

He got out a month too soon, though…