{"id":8695,"date":"2008-09-25T00:00:00","date_gmt":"2008-09-25T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-funds-in-the-microwave","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2008\/hedge-funds-in-the-microwave.html","title":{"rendered":"Hedge Funds In The Microwave"},"content":{"rendered":"<p><span class=\"lingo_region\"><\/p>\n<p>Forbes &#8211; In an op-ed in the  <em>Financial Times<\/em> on Monday , I described the unraveling and demise of the shadow banking system that started with non-bank mortgage lenders, structured investment vehicles (SIVs) and conduits, major independent monoline broker dealers and money market funds. I then argued that the next leg of this unraveling would be hedge funds and private equity firms and their reckless leveraged buyouts (LBOs). <\/p>\n<p>Let me now discuss in more detail this unraveling of parts of the hedge fund industry. <\/p>\n<p>First, note that too much of the shadow banking system was about &quot;Schmalpha&quot; rather than &quot;Alpha&quot; (i.e. the returns that fund managers and asset managers&#8211;with their ridiculously high management fees of 2% or more&#8211;were getting by parting investors from a good chunk of their assets, rather than by superior absolute returns). In fact, the hedge-fund math of &quot;2\/20&quot; was, most of the time, 2% for the fund managers and not 20% (sometimes single digit returns and, this year, actual negative ones) for investors. This scam is now unraveling. <\/p>\n<p><\/span><strong><a target=\"_blank\" href=\"http:\/\/www.hedgeco.net\/news\/news_land.php?i=http:\/\/www.forbes.com\/opinions\/2008\/09\/24\/hedge-funds-regulate-oped-cx_nr_0925roubini.html\">Read Complete Article<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Forbes &#8211; In an op-ed in the Financial Times on Monday , I described the unraveling and demise of the shadow banking system that started with non-bank mortgage lenders, structured investment vehicles (SIVs) and conduits, major independent monoline broker dealers [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[1476,116,1450,127,2833,406,414,285,30,516,1880,2832,1609],"class_list":["post-8695","post","type-post","status-publish","format-standard","hentry","category-syndicated","tag-ambiguity","tag-combination-of-the-two","tag-crimes-unit","tag-equity-funds","tag-european-exchange","tag-investment-funds","tag-jose-alberto","tag-management-platform","tag-rand-corporation","tag-stage-fund","tag-stephen-schwarzman","tag-vanguard-group","tag-weather-channel"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/8695","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=8695"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/8695\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=8695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=8695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=8695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}