Harriet and other PE Haters, this is for you

[tradergirl]

You remember Bethany McLean, right? She wrote, "Is Enron Overvalued?"

This story is about one of my favorite short selling targets of all time, Fortress Investment Group. Read this and you all will start to understand a lot of why thing are the way they are now. 22K square foot house anyone?

http://www.vanityfair.com/politics/features/2009/04/fortress-group200904?printable=true&currentPage=all

 

[swimmer]

Oh man, I thought this was going to be about Physical Education. I hated the flexed arm hang. But dodgeball was great if you got on the right team.

 

[PaulaW]

lol swimmer
Tradergirl, I have nothing to contribute but wanted to tell you I always read your posts with interest although I may not understand everything!

 

[Selkie]

Date: 3/5/2009 12:32:53 PM
Author: swimmer
Oh man, I thought this was going to be about Physical Education. I hated the flexed arm hang. But dodgeball was great if you got on the right team.

MEEEE too! Us tall girls got hosed on that one!

Sorry, end threadjack. Carry on.

 

[bebe]

thanks for the link TGirl, I''ll read that tonight.

 

[partgypsy]

Funny I just read that article in my Vanity Fair, along with one about Iceland and a couple articles about Maddoff. The whole thing does remind one of the Dutch Tulip Craze.

Interesting what they say about hedge and short selling contributing to the problem as well, where people who knew there were problems profited from it by short selling rather than alert authorities.

 

[Harriet]

Tradergirl, please pass me the barf bag. Sidenote: I used to work near the Fortress office, and would see arrogance streaming out.

 

[tradergirl]

You didn''t need to know anything but

FASB 157
elimination of uptick rule

 

[Harriet]

I have to get a copy of this issue. I thought hubby was crazy when he went to Iceland early last year to look at banks, but I had to eat my words.

 

[tradergirl]

The Iceland article is online too. It''s interesting. There''s a link to it on Naked Capitalism. I''m mobile or I''d link it for you.

 

[Harriet]

Thanks. I''ll find it. Btw, my husband agrees with you on private equity and short-selling. He even wants to buy in New Mexico!

 

[Harriet]

TG,
I haven''t read the McLean article yet, but I just finished the one on Madoff and Noel. Whoa!

 

[Beacon]

Date: 3/25/2009 12:51:40 PM
Author: Harriet
TG,
I haven''t read the McLean article yet, but I just finished the one on Madoff and Noel. Whoa!

I cannot stand that guy and his whole absurd money "managment" firm. Seems like all he was really good at doing was carrying a martini around Palm Beach parties. He provided no value at all to his investors. He charged htem 2 and 20 to do nothing! It amazes me how totally incompetent some of these vaunted money guys are. Of course Noel is toast now, and well deservedly so.

 

[purrfectpear]

"as well as “incentive fees”—20 to 25 percent of any profits."


WTH? Obviously I don''t understand the allure of investing in a hedge fund at all

What exactly did they offer that made it worth paying 2% upfront AND 20% or more of the profits? Why wouldn''t an investor just go with a mutual fund and keep 100% of the profit?

 

[Harriet]

His lack of due diligence is appalling.

 

[Dancing Fire]

Date: 3/25/2009 4:31:08 PM
Author: purrfectpear
'as well as “incentive fees”—20 to 25 percent of any profits.'


WTH? Obviously I don't understand the allure of investing in a hedge fund at all

What exactly did they offer that made it worth paying 2% upfront AND 20% or more of the profits? Why wouldn't an investor just go with a mutual fund and keep 100% of the profit?

cuz thieves like Maddoff was making customers 30% annually in a down market, so they thought