The most entertaining reading on the Web today may be the farewell letter from former Santa Monica hedge fund manager Andrew Lahde, who famously scored huge gains last year by correctly betting on the meltdown in subprime mortgage-backed securities.
The letter to clients begins with a vicious attack on the hedge fund industry itself and the U.S. "aristocracy," and ends with a plea for using hemp as an "alternative food and energy source."
Lahde, 37, nailed the subprime collapse, and reaped a reported 866% one-year return on his call.
But after that brilliant move, he shunned publicity. Last month, he said he was returning clients’ money and leaving the fund business because he considered the risks in the financial system to be extreme.
In his farewell letter, obtained by Portfolio.com, Lahde writes:
"Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their BlackBerries or other such devices. What is the point? They will all be forgotten in fifty years anyway. . . . I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the BlackBerry away and enjoy life."
Read the entire letter here.
http://www.typepad.com/t/trackback/816965/34637237
to be cynical means your drawing farther away from god..... when you come back to him you will realize god is everything and without him this country, you, everything is nothing.....
andrew lahde i like this guy, you can tell he has a good heart.
Stacy:
You couldn't be farther from the truth of my cynical nature. I am, in fact, in the process of refining a business plan in which I model a business based on the "Church of the Golden Doorknob." Briefly, members join for a modest fee and as they progress in spirituality, by following my fail-safe, step by step, easy to understand CDs (free postage), a penitent member progresses on the path to eternal bliss in the company of the "god" of their choice (we presently offer all the standards of Christianity, Islam, Hindu, etc...more to follow), and each level of spirituality gained affords the member the privilege of accessing the next elevated level by buying the next doorknob, i.e., copper, brass, silver, etc, ultimately attaining the right to purchase the "golden doorknob" for $100,000...while they last. As the founder of this religion, I do enjoy the perk of sitting at the right hand of god...for free. How much closer can I get?
I understand Lahde perfectly. I did +811% last year, mostly in feeder cattle and oats. And, I have no reason not to think I couldn't do it this year, but I too have basically quit. Not so much for enjoyment though, I'm a cynic.