Portfolio.com: The Pirate Pose
A fascinating look at the wealthy world of hedge funds via the recently launched Portfolio.com - The Pirate Pose, authored by none other than Tom Wolfe of The Bonfire of the Vanities fame.
Hedge funds have what investment managers call “the greatest business plan of all time,” known as “2 and 20.” Each year the typical fund takes 20% of the return plus 2% of the total investments. Some of the hottest managers, such as Icahn and Stevie Cohen, reportedly take 50% of the profits.
There are some 9,200 hedge funds spread all over the world. New York and Greenwich are the two great centers, but the top 100 as rated by Institutional Investor include funds strung out from Paris to London to Boston to East Setauket to Dallas to Los Angeles. The common denominator is something else entirely: that status fixation.
The 3 requirements: Total control, aggressiveness & complete, freebooting independence.
Un-real.
Related Posts: