Mr. 1,000% Calls It Quits, Lambastes Financial World

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.

RELATED ARTICLES:

Lahde Closes Short Credit Fund
Hedge Fund Gains 1,000%, Preps Short Credit Fund
ABX Short Seller Up 410% Through August
Hedge Funds Feed On Sub-Prime Woes
Three New Hedge Funds Banking On Housing Bubble Burst


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.