For Hedge Funds, Biggest Fear Is More Regulation
By Tomoeh Murakami Tse
Washington Post Staff Writer
Thursday, June 25, 2009
NEW YORK, June 24 — The greatest fear among hedge fund managers and executives, who have seen their industry shrink in the financial crisis, is neither the flight of wealthy investors nor ill-functioning markets but regulation, according to a survey to be released Wednesday.
. . . “What you don’t want to do is run the risk of killing the entrepreneurial spirit that made this country great.”
. . . “The greatest threat is not from Washington. The greatest threat is from a malfunctioning economy,” Leon Cooperman, co-founder of Omega Advisors, a $4 billion hedge fund, said in an interview.
That’s the entrepreneurial spirit that caused you guys to invent all those toxic assets no one can get rid of?
Or is it the inventive character of credit-default swaps that didn’t happen to (and were never meant to) pay off in the event of a default?
Possibly you mean the computer modeling risk-assessment programs that somehow didn’t even have a model for declining real estate values.
You guys shot the horse you rode in on and one of you wants to take aim at the next poor staggering beast and the other blames the institutional shooting of horses for the pickle you’re in.
With guys as dumb as you two still at the controls, I’d say the greatest fear for the nation is a recovery that plops you dudes back in the saddle.
Now I have to quit writing to go feed my Labrador, who’s smarter, more loving, a better companion and more faithful than the whole lot of you.