The recent spat between Charlie Munger and Bill Ackman is quite amusing. Doesn’t Mr. Ackman know this is one battle that he can’t win? Regardless of whether he is right or wrong, to attack the Oracle of Omaha and his partner is like attacking Santa Claus. Buffet and Munger are untouchable. And to think of commenting about Coca Cola, Heinz ketchup or anything else they have their hands in simply a waste of time, energy and resources. It is funny to watch, however, and I look forward to Mr. Munger’s reply. Hopefully, he is preparing a clever retort that hopefully is full of the wit and wisdom he displayed at Berkshire’s annual meeting this past May.
Why hedge funds matter
There has been a lot of talk recently about the need to change the tax code, because hedge fund managers simply move money around and don’t really add any value to anything. And while the jury is still out on carried interest and most likely will be for at least a year, or more likely years, to come, one thing that is clear is that the markets do need hedge funds for one thing – liquidity. Hedge funds and those who manage these massive pools of capital do something crucial. They fill the gap left by the many former investment banks and brokerages that have either gone bankrupt or turned themselves into commercial banks. Hedge funds are able stand on the other side of the trade when others don’t, or aren’t allowed to, and this necessary function shouldn’t be overlooked by the regulators or especially the public. And it’s not just U.S. markets, it’s the global markets as well. Hedge funds seek out and take risks in markets where others won’t. They stand in and make the trades and keep markets liquid in a marketplace where others hide behind regulation. Hedge funds and their managers are not perfect, but without them markets would be a lot less solid.
Operations for Alternatives is just around the corner. OFA will take place February 1-2, 2016 in Miami at the Fountainbleu. The program is shaping up quite nicely. If you have not already registered to attend the largest gathering of investment management operations professionals do so by clicking here! Trust me you don’t want to miss it.
THINGS THAT DRIVE ME CRAZY
Enough with the striped, multi-colored, polka dot socks. This is a trend that needs to end. Adult men should not be wearing socks other then solids. I find it hysterically funny when I see men wearing multi-colored socks with suits and ties. Perhaps I am a purest, but, really, no man needs anything more than blue, brown (with summer suits), grey and black socks to wear with a suit. Period.