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Sun May 26, 2013, 07:17 AM

How Did Major Hedge Fund Earn 30% Returns for 20 Years Straight? Lots of Cheating

http://www.alternet.org/corporate-accountability-and-workplace/how-did-major-hedge-fund-earn-30-returns-20-years-straight?paging=off

There are 8,000 hedge funds, and they are up to their eyeballs in unethical behavior.

How Did Major Hedge Fund Earn 30% Returns for 20 Years Straight? Lots of Cheating
By Les Leopold
May 23, 2013

How would you like to invest $10,000 and watch it grow over 20 years into $1,461,920? Well that's what happened at the giant hedge fund, SAC Capital Advisors, which made a 30% return for 20 years in a row.

How is it possible to make such profitable investments again and again and again? The U.S. Attorney for Manhattan, Preet Bharara, believes he has the answer: SAC is cheating ... again and again and again. In fact, Bharara suggests that hedge funds that engage in insider trading may be rotten to the core:

"Given the scope of the allegations to date, we are not talking simply about the occasional corrupt individual; we are talking about something verging on a corrupt business model, for the defendants seem to have taken the concept of social networking and turned it into a criminal enterprise. "refers to a 2011 hedge fund indictment, not the current case against SAC.)

To date, nine current and former SAC employees face insider trading criminal charges stemming from their work at the firm. Four have pled guilty and two are still fighting their indictments. Now the head of SAC, multi-billionaire Stephen A. Cohen (note the initials), will be subpoenaed to appear before a grand jury. The federal strategy may be to indict the entire hedge fund and shut it down, according to the New York Times.

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Reply How Did Major Hedge Fund Earn 30% Returns for 20 Years Straight? Lots of Cheating (Original post)
unhappycamper May 2013 OP
Pholus May 2013 #1
BillyRibs May 2013 #2
ElizabethWarren2016 May 2013 #3

Response to unhappycamper (Original post)

Sun May 26, 2013, 07:46 AM

1. Yup. I like to tease my business-oriented wife about this...


A good business transaction is one where both parties feel they have gotten something of value. A successful business transaction is one where one party ripped the other party off blind.

As a result, we don't have many good business transactions anymore. After all, 5% annual returns are considered failures these days.

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Response to unhappycamper (Original post)

Sun May 26, 2013, 09:41 PM

2. No SOB ever became wealthy,

 

without robbing some poor little bastard like you and me.

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Response to unhappycamper (Original post)

Sun May 26, 2013, 10:49 PM

3. Either you put people like this in jail, or the problem gets worse.

 

For the record, Obama's administration has been as bad if not worse than the hill when it comes to protecting these kinds of criminals.

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