3 ms·

They're a zombie, but having a large cash reserve in one spot is capital, and capital keeps a business running, hunting for brains. Maybe they should reinvent

They're a zombie, but having a large cash reserve in one spot is capital, and capital keeps a business running, hunting for brains. Maybe they should reinvent themselves as a hedge fund.

rgbrenner 9y ago
No one would put money into a hedge fund run by holmes. Would you trust her with your money? She stinks of fraud already. If she told me the fund was doing great, I would get suspicious that she was turning into the next bernie madoff.
- unknown_apostle 9y ago
  You would think so, but: https://en.wikipedia.org/wiki/John_Meriwether https://en.wikipedia.org/wiki/John_Meriwether "A year after LTCM's collapse, in 1999, Meriwether founded JWM Partners LLC. (...) Meriwether opened his third hedge fund venture, named JM Advisors Management, also based in Greenwich, Connecticut, in 2010." Meriwether blows up and is not a fraud. But then there's this guy: https://www.wsj.com/articles/jon-corzine-considers-launching-hedge-fund-1429484718 https://www.wsj.com/articles/jon-corzine-considers-launching... Though in all fairness I don't know whether he pulled that one off.
  - jzebedee 9y ago
    I don't think equating LTCM with fraud is exactly right. They used an incredibly risky strategy and had their leverage blow up in a black swan event. A failure, but not fraud.
    - unknown_apostle 9y ago
      No you're right, it's fundamentally wrong to compare Meriwether with Corzine. But my kneejerk response was to the "entrust your money".
    - btilly 9y ago
      A black swan event caused by the phenomena that previously uncorrelated financial indicators temporarily become correlated under stress. A few months after they blew up, their portfolio was profitable again.
  - rgbrenner 9y ago
    "Though in all fairness I don't know whether he pulled that one off." He didn't. In fact, that was his 2nd attempt at raising a fund.. he tried in 2012 right after mf. And he's currently working on his third attempt to raise a fund. http://www.zerohedge.com/news/2017-05-18/corzine-tries-launch-hedge-fund-3rd-time-trade-trump-crash http://www.zerohedge.com/news/2017-05-18/corzine-tries-launc... If anything, that's a pretty good example of my point.. no one wants to give their money to a fraud.

They're a zombie, but having a large cash reserve in one spot is capital, and capital keeps a business running, hunting for brains. Maybe they should reinvent themselves as a hedge fund.

rgbrenner 9y ago

No one would put money into a hedge fund run by holmes. Would you trust her with your money? She stinks of fraud already. If she told me the fund was doing great, I would get suspicious that she was turning into the next bernie madoff.

unknown_apostle 9y ago
You would think so, but: https://en.wikipedia.org/wiki/John_Meriwether https://en.wikipedia.org/wiki/John_Meriwether "A year after LTCM's collapse, in 1999, Meriwether founded JWM Partners LLC. (...) Meriwether opened his third hedge fund venture, named JM Advisors Management, also based in Greenwich, Connecticut, in 2010." Meriwether blows up and is not a fraud. But then there's this guy: https://www.wsj.com/articles/jon-corzine-considers-launching-hedge-fund-1429484718 https://www.wsj.com/articles/jon-corzine-considers-launching... Though in all fairness I don't know whether he pulled that one off.
- jzebedee 9y ago
  I don't think equating LTCM with fraud is exactly right. They used an incredibly risky strategy and had their leverage blow up in a black swan event. A failure, but not fraud.
  - unknown_apostle 9y ago
    No you're right, it's fundamentally wrong to compare Meriwether with Corzine. But my kneejerk response was to the "entrust your money".
  - btilly 9y ago
    A black swan event caused by the phenomena that previously uncorrelated financial indicators temporarily become correlated under stress. A few months after they blew up, their portfolio was profitable again.
- rgbrenner 9y ago
  "Though in all fairness I don't know whether he pulled that one off." He didn't. In fact, that was his 2nd attempt at raising a fund.. he tried in 2012 right after mf. And he's currently working on his third attempt to raise a fund. http://www.zerohedge.com/news/2017-05-18/corzine-tries-launch-hedge-fund-3rd-time-trade-trump-crash http://www.zerohedge.com/news/2017-05-18/corzine-tries-launc... If anything, that's a pretty good example of my point.. no one wants to give their money to a fraud.