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Am I wrong if feeling no sympathy for a Hedge fund getting bilked? Like it's nice that for once it's not the "little guy" getting screwed over.

rpedroso 10y ago
Well, notwithstanding all the ordinary people who got blood tests done by Theranos that were later invalidated.
dsacco 10y ago
Hedge funds frequently have charitable foundations and pension funds as limited partners. Unless the hedge fund is just a family office, there's a high probability that the "little guy" will be impacted, somewhere. I can't tell you if your schadenfreude over hedge funds losing money is right or wrong, because that's based on normative values. But I'd encourage you to adjust your understanding of the financial dynamics involved.
- balls187 10y ago
  But if the Theranos deal panned out, who would have benefited from the investment by the hedgefund? Would it be the "little guy?" Or would it be the fund managers, and all the "insiders." It goes hand and hand with the notion that the system is rigged.
  - saryant 10y ago
    Do you know how a hedge fund works? Investors (the pensions and charities and so forth) bear all losses and gains, minus the fund's fee.
  - Pyxl101 10y ago
    > But if the Theranos deal panned out, who would have benefited from the investment by the hedgefund? A hedge fund is an investment fund that pools money from investors and then invests it according to the hedge fund's strategy. So, the primary people who will benefit or lose are the people who invested their money with the hedge fund. Hedge funds also tend to take a percentage of profits as part of their compensation. I don't see what connection there is to the notion that the system is rigged. No one is obligated to invest in hedge funds and the people who do are aware of the hedge fund's compensation structure. Anyone who invests money is aware that investments have risk and can fail. The purpose of a hedge fund is to invest money to generate (better-than-market) returns, and so the hedge fund will be compensated if that happens. The fact that they're compensated from profits acts as an incentive for them to actually generate profits.
  - maverick_iceman 10y ago
    ^Spotted a Bernie fan. :)
frozenport 10y ago
It would suck if you made financial decisions based on falsified documents.
- balls187 10y ago
  How hard do you have to lie in order to pass the due diligence required for a $100m investment?
  - Overtonwindow 10y ago
    Ask Elizabeth Holmes.
  - frozenport 10y ago
    This is easy to do if you doctor documents, indeed the only reason straight up forgery isn't done more often are the legal ramifications discussed here.
gozur88 10y ago
>Am I wrong if feeling no sympathy for a Hedge fund getting bilked? I would think so. You feel sympathy for small investors who get bilked but not large ones, purely because the large ones have more money?

rpedroso 10y ago

Well, notwithstanding all the ordinary people who got blood tests done by Theranos that were later invalidated.

dsacco 10y ago

Hedge funds frequently have charitable foundations and pension funds as limited partners. Unless the hedge fund is just a family office, there's a high probability that the "little guy" will be impacted, somewhere. I can't tell you if your schadenfreude over hedge funds losing money is right or wrong, because that's based on normative values. But I'd encourage you to adjust your understanding of the financial dynamics involved.

balls187 10y ago
But if the Theranos deal panned out, who would have benefited from the investment by the hedgefund? Would it be the "little guy?" Or would it be the fund managers, and all the "insiders." It goes hand and hand with the notion that the system is rigged.
- saryant 10y ago
  Do you know how a hedge fund works? Investors (the pensions and charities and so forth) bear all losses and gains, minus the fund's fee.
- Pyxl101 10y ago
  > But if the Theranos deal panned out, who would have benefited from the investment by the hedgefund? A hedge fund is an investment fund that pools money from investors and then invests it according to the hedge fund's strategy. So, the primary people who will benefit or lose are the people who invested their money with the hedge fund. Hedge funds also tend to take a percentage of profits as part of their compensation. I don't see what connection there is to the notion that the system is rigged. No one is obligated to invest in hedge funds and the people who do are aware of the hedge fund's compensation structure. Anyone who invests money is aware that investments have risk and can fail. The purpose of a hedge fund is to invest money to generate (better-than-market) returns, and so the hedge fund will be compensated if that happens. The fact that they're compensated from profits acts as an incentive for them to actually generate profits.
- maverick_iceman 10y ago
  ^Spotted a Bernie fan. :)

frozenport 10y ago

It would suck if you made financial decisions based on falsified documents.

balls187 10y ago
How hard do you have to lie in order to pass the due diligence required for a $100m investment?
- Overtonwindow 10y ago
  Ask Elizabeth Holmes.
- frozenport 10y ago
  This is easy to do if you doctor documents, indeed the only reason straight up forgery isn't done more often are the legal ramifications discussed here.

gozur88 10y ago

>Am I wrong if feeling no sympathy for a Hedge fund getting bilked? I would think so. You feel sympathy for small investors who get bilked but not large ones, purely because the large ones have more money?