Monday, December 15, 2008

Structural Issues Indeed

If you had $10,000,000 right now and wanted it managed, who would you give it to?

The equity mutual fund managers are all down 40% this year.

The Fund of Fund guys, to the extent that they steered money to outfits such as Madoff & Co., have lost a lot of credibility.

The hedge funds? Many of them, including some of the best, are down 30%+ and refusing to allow investors to withdraw their money, even under the client-unfriendly terms stipulated in the partnership agreement.

My guess is that a new form of fiduciary is going to emerge that is more investor-friendly and more diligent. The business of managing money is in many parts of the system about raising money, not managing it. That is going to change.

1 comment:

Anonymous said...

Well that's a real son of a bitch.