Last week on CNBC, Michael Steinhardt bashed Warren Buffett, seemingly out of nowhere.
He called in to question his returns (outperforming the S&P? “I’m not sure he’s done that.”), his ethics (on Sokol: it’s not common for Buffett “to get *caught* in that sort of a thing.”) and said Buffett is “the greatest PR person of all time.”
Today on CNBC, Leon Cooperman stood up for Buffett.
He said, “I don’t know if it’s jealousy or what.”
The talking heads were discussing the issue of the hedge funds of present day being not profit machines but asset-growing machines, which Steinhardt tried to make a point for.
Andrew Ross Sorkin reiterated Steinhardt’s point that today’s hedge funds make a lot of their profits from management fees, to which Cooperman asked, “do you think the investors are fools?”
He also made the point that returns in hedge funds are better today. Much better for example, than in mutual funds, which only charge 1% management fees (most hedge funds charge 2%).