Andrew Lahde wrote:
> Letter: Andrew Lahde, Lahde Capital Management
> By Andrew Lahde
> Published: October 17 2008 19:09 | Last updated: October 17 2008
> 19:09
> October 17, 2008
> Today I write not to gloat. Given the pain that nearly everyone
> is experiencing, that would be entirely inappropriate. Nor am I
> writing to make further predictions, as most of my forecasts in
> previous letters have unfolded or are in the process of unfolding.
> Instead, I am writing to say goodbye.
> Recently, on the front page of Section C of the Wall Street
> Journal, a hedge fund manager who was also closing up shop (a $300
> million fund), was quoted as saying, “What I have learned about
> the hedge fund business is that I hate it.” I could not agree more
> with that statement. I was in this game for the money. The low
> hanging fruit, i.e. idiots whose parents paid for prep school,
> Yale, and then the Harvard MBA, was there for the taking. These
> people who were (often) truly not worthy of the education they
> received (or supposedly received) rose to the top of companies
> such as AIG, Bear Stearns and Lehman Brothers and all levels of
> our government. All of this behavior supporting the Aristocracy
> only ended up making it easier for me to find people stupid enough
> to take the other side of my trades. God bless America.
> There are far too many people for me to sincerely thank for my
> success. However, I do not want to sound like a Hollywood actor
> accepting an award. The money was reward enough. Furthermore, the
> endless list of those deserving thanks know who they are.
> I will no longer manage money for other people or institutions. I
> have enough of my own wealth to manage. Some people, who think
> they have arrived at a reasonable estimate of my net worth, might
> be surprised that I would call it quits with such a small war
> chest. That is fine; I am content with my rewards. Moreover, I
> will let others try to amass nine, ten or eleven figure net
> worths. Meanwhile, their lives suck. Appointments back to back,
> booked solid for the next three months, they look forward to their
> two week vacation in January during which they will likely be
> glued to their Blackberries or other such devices. What is the
> point? They will all be forgotten in fifty years anyway. Steve
> Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I
> do not understand the legacy thing. Nearly everyone will be
> forgotten. Give up on leaving your mark. Throw the Blackberry away
> and enjoy life.
> So this is it. With all due respect, I am dropping out. Please do
> not expect any type of reply to emails or voicemails within normal
> time frames or at all. Andy Springer and his company will be
> handling the dissolution of the fund. And don’t worry about my
> employees, they were always employed by Mr. Springer’s company and
> only one (who has been well-rewarded) will lose his job.
> I have no interest in any deals in which anyone would like me to
> participate. I truly do not have a strong opinion about any
> market right now, other than to say that things will continue to
> get worse for some time, probably years. I am content sitting on
> the sidelines and waiting. After all, sitting and waiting is how
> we made money from the subprime debacle. I now have time to repair
> my health, which was destroyed by the stress I layered onto myself
> over the past two years, as well as my entire life – where I had
> to compete for spaces in universities and graduate schools, jobs
> and assets under management – with those who had all the
> advantages (rich parents) that I did not. May meritocracy be part
> of a new form of government, which needs to be established.
> On the issue of the U.S. Government, I would like to make a
> modest proposal. First, I point out the obvious flaws, whereby
> legislation was repeatedly brought forth to Congress over the past
> eight years, which would have reigned in the predatory lending
> practices of now mostly defunct institutions. These institutions
> regularly filled the coffers of both parties in return for voting
> down all of this legislation designed to protect the common
> citizen. This is an outrage, yet no one seems to know or care
> about it. Since Thomas Jefferson and Adam Smith passed, I would
> argue that there has been a dearth of worthy philosophers in this
> country, at least ones focused on improving government. Capitalism
> worked for two hundred years, but times change, and systems become
> corrupt. George Soros, a man of staggering wealth, has stated that
> he would like to be remembered as a philosopher. My suggestion is
> that this great man start and sponsor a forum for great minds to
> come together to create a new system of government that truly
> represents the common man’s interest, while at the same time
> creating rewards great enough to attract the best and brightest
> minds to serve in government roles without having to rely on
> corruption to further their interests or lifestyles. This forum
> could be similar to the one used to create the operating system,
> Linux, which competes with Microsoft’s near monopoly. I believe
> there is an answer, but for now the system is clearly broken.
> Lastly, while I still have an audience, I would like to bring
> attention to an alternative food and energy source. You won’t see
> it included in BP’s, “Feel good. We are working on sustainable
> solutions,” television commercials, nor is it mentioned in ADM’s
> similar commercials. But hemp has been used for at least 5,000
> years for cloth and food, as well as just about everything that is
> produced from petroleum products. Hemp is not marijuana and vice
> versa. Hemp is the male plant and it grows like a weed, hence the
> slang term. The original American flag was made of hemp fiber and
> our Constitution was printed on paper made of hemp. It was used as
> recently as World War II by the U.S. Government, and then promptly
> made illegal after the war was won. At a time when rhetoric is
> flying about becoming more self-sufficient in terms of energy, why
> is it illegal to grow this plant in this country? Ah, the female.
> The evil female plant – marijuana. It gets you high, it makes you
> laugh, it does not produce a hangover. Unlike alcohol, it does not
> result in bar fights or wife beating. So, why is this innocuous
> plant illegal? Is it a gateway drug? No, that would be alcohol,
> which is so heavily advertised in this country. My only conclusion
> as to why it is illegal, is that Corporate America, which owns
> Congress, would rather sell you Paxil, Zoloft, Xanax and other
> addictive drugs, than allow you to grow a plant in your home
> without some of the profits going into their coffers. This policy
> is ludicrous. It has surely contributed to our dependency on
> foreign energy sources. Our policies have other countries
> literally laughing at our stupidity, most notably Canada, as well
> as several European nations (both Eastern and Western). You would
> not know this by paying attention to U.S. media sources though,
> as they tend not to elaborate on who is laughing at the United
> States this week. Please people, let’s stop the rhetoric and start
> thinking about how we can truly become self-sufficient.
> With that I say goodbye and good luck.
> All the best,
> Andrew Lahde
>
http://www.ft.com/cms/s/0/128d399a-9c75 ... s01=1.html