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  • And These Guys Assess Risk… for a Living?

    Posted by Carl from Chicago on May 11th, 2009 (All posts by )

    A recent article in the Wall Street Journal was titled “Hedge Funds Raise Voices – And Returns”. Hedge fund managers are supposed to be professionals at managing risks and seeing future trends – this is what allows them to be compensated at such high levels. Thus this article made me laugh out loud:

    Many fund managers say they feel… but would never say publicly: They have been disappointed by the Obama administration, left detached from a leader to whose party they gave 70% of their overall campaign donations during the 2008 election.

    What sort of information were they basing their opinion that siding with Obama was GOOD for their interests? Obama always has sided far to the left on business issues, favoring unions, high taxes, and restrictive environmental rules that damage businesses. How could these “sages” of risk and reward think that he possibly could help them?

    Most likely they are wealthy people and live amongst the trust-fund wealthy and they felt it was easier to say that they supported Obama than the Republicans because of W’s unpopularity. Or perhaps their new 2nd trophy wife, the one they picked up after they cast aside the one that stood by them while they were working their way up the ladder and didn’t have giant riches, pushed them into it because it seemed like all the celebrities said it was the thing to do.

    Either way, it is laughable and nearly insane that 1) they donated to a guy whose interests were diametrically opposed to theirs 2) that they were SURPRISED by this outcome 3) and that they are supposedly forward-looking guys, to boot.

    Cross posted at LITGM

     

    9 Responses to “And These Guys Assess Risk… for a Living?”

    1. Robert Schwartz Says:

      Another round of “Who’s the Rube?”.

    2. Jonathan Says:

      What sort of information were they basing their opinion that siding with Obama was GOOD for their interests?

      Some of them were foolish about Obama’s character and intent. Others thought that they could buy protection by publicly supporting Obama. The latter group was not being unreasonable, since similar behavior by finance people in the past toward the Clintons and Schumers of the world brought favorable consideration from the govt. But Obama is either an amazingly good con-man who successfully plays interest groups against each other, or a genuine hard-Left ideologue, or both. Now that he’s benefited from their money and other support the financiers are victimized to gain support from the next interest group. Or maybe Obama simply doesn’t like markets and market people. Same outcome either way.

    3. TDM Says:

      29 cents on the dollar is still much better than the gulag. We don’t know how things would have turned out for the fund managers had they not given money to Obama and he had still won. I think that the return on their contributions, compared to the alternative, is still very high. Sometimes surrendering early is the best outcome.

    4. Blacque Jacques Shellacque Says:

      “…and they felt it was easier to say that they supported Obama than the Republicans because of W’s unpopularity.”

      Easier maybe, but it appears to have come at a rather high price….

    5. TheOldMan Says:

      When you are already wealthy, income taxes are not as big of a problem. You can work around them (Geithner defense). You already have your pile and unless Ovomit inplements a Europeon style wealth tax, you are sitting pretty. You can appear concerned and “progressive” about the little folks. The rest of us lose the possibility of ever accumulating a nice pile of assets.

    6. Jerry Says:

      http://www.amazon.com/Suicidal-Corporation-Touchstone-Books-Weaver/dp/0671675591/ref=sr_1_1?ie=UTF8&s=books&qid=1242129461&sr=8-1

    7. John Says:

      What sort of information were they basing their opinion that siding with Obama was GOOD for their interests?

      Wasn’t there a book called “What’s the Matter with Kansas?”. It sparked a condescending conversation on the Left about why “people vote against their own economic interests.” It’s a good question to ask these hedge fund managers.

      Obama was pretty clearly advocating socialism lite — at minimum. Maybe they’re just astonished to see him fulfill one of his campaign promises.

    8. BOBB Says:

      The President of the United Mine Workers,Cecil Roberts, kissed Jug-Ears azz during the election.It was sickening.
      Now some new appointees at the EPA are going to shut coal mining down.

    9. mishu Says:

      Instead of “What’s the Matter with Kansas?”, it’s “What’s the Matter with Connecticut?”.