Morris County Daily Record – Hedge funds are a fine investment idea. They should not be hemmed in by excessive regulations, argues Phil Goldstein of Bulldog Investors, a groupof hedge funds in Saddle Brook.
Goldstein, who successfully sued the Securities and Exchange Commission to keep it from registering hedge funds, said few other investments align the money manager’s interests so closely with the interests of investors.
Hedge-fund managers collect a hefty slice of the profits and don’t collect anything when their funds disappoint.
As for Amaranth Advisors of Greenwich, Conn., the hedge fund that recently lost 60 percent of its assets betting on natural-gas prices, Goldstein said nothing can prevent “crazy” investment behavior. (Hedge funds are for wealthy investors willing to take special risks on unusual investment strategies, such as betting against stocks, selling them short.)
Speaking last week to the Financial Breakfast Club of Morris County, Goldstein also praised hedge funds for their “creativity.”
