4 ms·
Kill 'em all. That's how a lot of folks feel, but in reality what we need to re-think is compensation. Hedge funds being paid 1-and-20 and company management
by fnazeeri 18y ago
Kill 'em all. That's how a lot of folks feel, but in reality what we need to re-think is compensation. Hedge funds being paid 1-and-20 and company management getting 99% of comp in call options provides a huge incentive for taking on absurd risk.
- furiouslol 18y agoOk. You'll not only be killing the hedge funds but you'll also be killing the ETF issuers who needs to short sell in order to keep the ETF price in line with the underlying basket of stocks (Some ETF issuers use OTC swaps but at the end of the rope, some party still need to short the stocks to keep the price efficient)
- fnazeeri 18y ago$200MM payout to top 3 MLCO exec? Seems like found money that ought to be taxed at something other than cap gains rate to me... http://www.americablog.com/2008/09/top-3-merrill-lynch-execs-to-receive.html http://www.americablog.com/2008/09/top-3-merrill-lynch-execs...
- furiouslol 18y agoI don't get it. What does that got to do with short selling? If they effect a blanket short sell ban, you're going to see quite a number of business going bust. The ETF business will be derailed. So will the options business. Companies shut down. People get laid off. If they really want to stop the carnage inflicted on the financials, the should just ban short sells on the financial sector alone.
- byrneseyeview 18y agoMy goodness. I don't understand why you invested in those hedge funds in the first place if you thought the managers were overpaid. I wouldn't mind giving Jim Simons his 5% of assets and 44% of gains if I could invest in Rentec. Unfortunately, I'm not a Rentec investor, so his compensation is literally none of my business.