Comments on: The dumb way to steal from your investors http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/ It may be cheap, but is it a Goode value? Sun, 16 Oct 2011 22:06:46 -0400 http://wordpress.org/?v=2.8 hourly 1 By: michael http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-505 michael Tue, 20 May 2008 16:03:16 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-505 bob, I love the phrase you use, "proper scam". Such irony (perhaps unintended?). bob, I love the phrase you use, “proper scam”. Such irony (perhaps unintended?).

]]> By: michael http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-504 michael Mon, 19 May 2008 20:39:17 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-504 A judge just froze the assets of the Plus Money funds: http://www.sec.gov/litigation/litreleases/2008/lr20587.htm The court has appointed a receiver for the funds. From the above press release: "Investors may direct their inquiries to the permanent receiver, Stephen J. Donell, at (310) 207-8481, or visit the receiver's website at www.fedreceiver.com." A judge just froze the assets of the Plus Money funds:
http://www.sec.gov/litigation/litreleases/2008/lr20587.htm

The court has appointed a receiver for the funds. From the above press release:

“Investors may direct their inquiries to the permanent receiver, Stephen J. Donell, at (310) 207-8481, or visit the receiver’s website at http://www.fedreceiver.com.”

]]> By: bob http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-463 bob Thu, 08 May 2008 18:00:14 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-463 Railey, (If that is your real name.) What you don't know about him could fill an ocean. He graduated in 1984. If you "worked" with him, it was probably when he was working at the grociery store. Not when he became successful 10 years ago. Alot can change in that span of time. It doesn't take much time to learn any business in this age of the internet. If you know so much about running a proper scam, maybe you should do one. Obviously you still work for the man and are bitter that you didn't think of it first. Railey, (If that is your real name.) What you don’t know about him could fill an ocean. He graduated in 1984. If you “worked” with him, it was probably when he was working at the grociery store. Not when he became successful 10 years ago. Alot can change in that span of time. It doesn’t take much time to learn any business in this age of the internet. If you know so much about running a proper scam, maybe you should do one. Obviously you still work for the man and are bitter that you didn’t think of it first.

]]> By: michael http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-461 michael Wed, 07 May 2008 16:22:48 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-461 Sorry Great Dane - my spam filter caught your most recent comment. I have marked it as not spam. I love Capital Decimation Partners. I may name my hedge fund that. Sorry Great Dane – my spam filter caught your most recent comment. I have marked it as not spam.

I love Capital Decimation Partners. I may name my hedge fund that.

]]> By: Railey Farness http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-460 Railey Farness Wed, 07 May 2008 16:04:30 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-460 I worked with Matthew LaMadrid (known as "Beau"). To be honest, I don't recall that he finished high school, (it possible he got his diploma, but I don't recall that he finsihed school). I know he did not go to college and for years he was barely able to keep his head above water. He worked at a mortgage brokerage company (remember, education is not key for these types of companies). Why folks thought it was a good idea to send him their hard earned bucks so that he could invest in cover calls is beyond me. All I can say is that they had no idea what this guy was really about and where he came from. He wasn't even bright enough to know how to keep his scam going! Should've gone to college! Or at least gotten a licesense. I worked with Matthew LaMadrid (known as “Beau”). To be honest, I don’t recall that he finished high school, (it possible he got his diploma, but I don’t recall that he finsihed school). I know he did not go to college and for years he was barely able to keep his head above water. He worked at a mortgage brokerage company (remember, education is not key for these types of companies). Why folks thought it was a good idea to send him their hard earned bucks so that he could invest in cover calls is beyond me. All I can say is that they had no idea what this guy was really about and where he came from. He wasn’t even bright enough to know how to keep his scam going! Should’ve gone to college! Or at least gotten a licesense.

]]> By: Great Dane http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-459 Great Dane Tue, 06 May 2008 16:13:59 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-459 Thanks for the link. If we're going to broaden our conversation to hedge fund managers who don't understand the risks they're taking, this is going to take a very long time (and include Nobel laureates Myron Scholes and Robert C. Merton http://en.wikipedia.org/wiki/LTCM). I short stocks, and I realize that I have unlimited downside potential. However, it's pretty rare to have your portfolio truly blow up without using leverage (which the hedge fund manager in the original post was certainly doing, since treasury funds just don't move that much otherwise). What bothers me is wonderful companies like Vanguard falling prey to fads like a 130/30 "Market Neutral" fund, believing that they can hedge their long holdings with short ones. Sure, sometimes you can hedge, and sometimes both your long and your short positions can go against you simultaneously. Even worse, look up Capital Decimation Partners to see how a hedge fund pursuing a guaranteed-to-fail strategy can still make enormous sums for its managers. http://krugman.blogs.nytimes.com/2008/03/16/capital-decimation-partners/ Thanks for the link. If we’re going to broaden our conversation to hedge fund managers who don’t understand the risks they’re taking, this is going to take a very long time (and include Nobel laureates Myron Scholes and Robert C. Merton http://en.wikipedia.org/wiki/LTCM).

I short stocks, and I realize that I have unlimited downside potential. However, it’s pretty rare to have your portfolio truly blow up without using leverage (which the hedge fund manager in the original post was certainly doing, since treasury funds just don’t move that much otherwise). What bothers me is wonderful companies like Vanguard falling prey to fads like a 130/30 “Market Neutral” fund, believing that they can hedge their long holdings with short ones. Sure, sometimes you can hedge, and sometimes both your long and your short positions can go against you simultaneously.

Even worse, look up Capital Decimation Partners to see how a hedge fund pursuing a guaranteed-to-fail strategy can still make enormous sums for its managers.
http://krugman.blogs.nytimes.com/2008/03/16/capital-decimation-partners/

]]> By: michael http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-457 michael Tue, 06 May 2008 12:36:55 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-457 It took me a couple minutes, but I remember now who Sam Israel is: http://www.michaeldavidthomas.com/dailycaveat/labels/Sam%20Israel.html It took me a couple minutes, but I remember now who Sam Israel is:
http://www.michaeldavidthomas.com/dailycaveat/labels/Sam%20Israel.html

]]> By: Adam http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-456 Adam Tue, 06 May 2008 12:33:20 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-456 Great Dane -- neither was Sam Israel.... Great Dane — neither was Sam Israel….

]]> By: michael http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-455 michael Mon, 05 May 2008 21:01:29 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-455 <p>:P Well said.</p> :P Well said.

]]> By: Great Dane http://www.goodevalue.com/2008/05/the-dumb-way-to-steal-from-your-investors/comment-page-1/#comment-454 Great Dane Mon, 05 May 2008 20:58:47 +0000 http://www.goodevalue.com/2008/05/05/the-dumb-way-to-steal-from-your-investors/#comment-454 Clearly, you are not sophisticated enough to understand all of the subtle strategies employed by hedge funds. Nor am I. Clearly, you are not sophisticated enough to understand all of the subtle strategies employed by hedge funds. Nor am I.

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