Friday, 29 July 2016
Last updated 12 hours ago
Oct 17 2008 | 3:08pm ET
Rising stars fade fast. Andrew Lahde, who last year rose to fame in the hedge fund world making 1,000% shorting the ABX Index, is closing up shop for good.
Lahde, in a surprisingly blunt letter to investors obtained by FINalternatives, says he was always in the game for the money and that he preyed on the low hanging fruit, “i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA.”
The idiots, whom Lahde referred to as people who rose to the top of companies such as AIG, Bear Stearns and Lehman, ended up making it easier for him to find people “stupid enough” to take the other side of his trades.
Lahde says he will no longer manage money for other people or institutions and adds that he’s content with his rewards while letting others try to amass nine, 10 or 11 figure net worths.
“Meanwhile, their lives suck,” he proclaims. “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?”
In addition, Lahde says he has no interest in getting involved in any other ventures and does not have a strong opinion about any market right now, except to say that things will continue to get worse for some time, probably years. Instead, he’s going to take the time to repair his health, which was destroyed by the stress of competing for spaces in universities and graduate schools, jobs and assets under management – with those who had all the advantages (including “rich parents”) that he did not.
“May meritocracy be part of a new form of government, which needs to be established,” he says.
Needless to say, Lahde will not be returning any e-mails or voicemails. Andy Springer, Lahde’s chief operating officer and chief compliance officer, will be handling the dissolution of the fund.