The harder the hedge fund managers fall - the more money they lose, the bigger the fat cats - the easier it is for them to raise additional seed capital for another hedge fund idea. So reports The Wall Street Journal this morning in Rebounds by Hedge-Fund Stars Prove Its a Mulligan Industry.
Referring to the golf term mulligan, whereby a player is permitted to take another shot after landing in the weeds, some hedge fund executives are remarking on the mixed-up fate of colleagues who lost millions, and in many cases billions, of investors and even their own moneyonly to return to the table a second, and sometimes even a third time, for more.
The logic seems to be, those who fell hard obviously are big guns, hedge fund portfolio managers who rank and whose ideas are aplenty. Some are also arguing that their highly leveraged bets on subprime mortgages, sometimes nine times capital in hand, were actually smart calls but that the banks pulled out on them too early.
Some, like Jeffrey Larson of
Its crazy, but the guy whos down substantially often will have a lot more options versus someone who hasnt lost much money, Neal Berger, head of Eagles View Asset Management, told The Journal.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
