Hedge fund veteran Sandra Manzke pulled a Jerry Maguire earlier this week and sent a letter to hundreds of investors expressing her disgust with the behaviour of other hedgies, many of whom are trying to get their own money out of their funds before letting investors do so. She calls for industry reform.
If this really is like Jerry Maguire though, the head of Maxam Capital in Greenwich, will be fired within the week, and take the goldfish with her. Which would be nice, they probably don’t like looking at all of the glum faces the economy’s created.
NY Post: A pioneer in hedge-fund investing and best known for founding Tremont Capital Management, Manzke sent an angry missive to hundreds of her peers earlier this week, calling on them to join together to push for reform in the $1.5 trillion industry.
“I am appalled and disgusted by the activities of a number of hedge-fund managers,” said the letter, which raises a fist against what Manzke sees as a general degradation of ethics in the industry…
Some are fighting to “get their money out ahead of investors,” or “mispricing their books,” said the letter by Manzke, who currently runs hedge-fund investment firm Maxam Capital Management in Darien, Conn.
She’s also livid over the growing practice of hedge funds locking up investors’ money for months or years – a practice known as “gating ” – while they still feel they’re entitled to charge 2 per cent management fees during that time period.
Fed up, she blasts the structure of hedge-fund fees, saying they have grown to “outrageous levels.”…
Manzke’s letter also called on hedge-fund investors to fight back.
Specifically, she calls for the formation of a group that she calls the Hedge Fund Investors United Forum, which she hopes will set industry standards and allow investors to join forces in fighting headstrong managers.
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