[FoRK] Ayn Rand-loving CEO destroys his empire

Ken Meltsner meltsner at alum.mit.edu
Mon Dec 16 07:19:50 PST 2013


Treating winning hedge (or mutual) fund managers as business geniuses seems
to be a variant on the old investment newsletter scam -- send a large
enough population of readers a pair of newsletters with opposite
predictions.  Drop the readers who received the prediction that didn't come
true. Repeat 5 times and you'll have a list of potential (high $)
subscribers who are convinced that you beat the market 5 times in row.

Start with a large enough population of hedge funds, and some of them have
to be winners if they're using dartboards to predict the markets.  They may
underperform this standard if they're depending on their managers'
expertise.

Ken


-- 
After 30+ years of email, I have used up my supply of clever ,sig material.


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