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

Delayed Flash Crash Arrest Highlights Difficulties Detecting Fraud

Apr 23 2015 | 7:19am ET

The five years it took regulators to bring high-profile charges against a UK trader...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note