May 26, 2006
Hedge Fund Managers
Posted by Gordon Smith

This is "the golden age of hedge funds," says dailyii.com. I'll say! Two hedge fund managers pulled down over $1 BILLION in compensation last year.

One of them was T. Boone Pickens!

Sure beats fighting over hostile takeovers in the Delaware courts.

HT Paul Kedrosky.

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Comments (1)

1. Posted by James on May 29, 2006 @ 0:36 | Permalink

Just wait until Gold and Petroleum prices retreat like they always have. Hedge funds will have derivatives in place that will be much higher than market hub prices. Oil companies, and gold companies, the entities with the most leverage are only hedging to lock into there economics projections. Once the hedged price is above the hub price, those same managers will start losing money. It is possible they could recoup those losses on those who are putting money into commodities going up, but I doubt those investors have nearly as much leverage. Therefore the point is again proven that the only entity that always wins is the bank.

Historical example- drilling funds are back, but with the retreated prices of the past decade they were nowhere to be found. It will happen again.

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