Assessing Greenspan: Crazy Old Grandfather/Local Homeless Man Who Should’ve Been Put In A Home/Halfway House Years Ago Or Guy Who Knows What's Up?

Posted by Bess Levin, May 23, 2007, 3:27pm

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A favored reader e-mails: "US markets (supposedly) reacted negatively to comments made by the ESTEEMED former Fed Chair Alan Greenspan, this time regarding his warning of a dramatic fall for Chinese markets...check this chart and tell me again why we should pay that close attention??"

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Posted by BSD, May 23, 2007 3:38PM

Just you wait, Bessy. Remember Alan doesn't think short-term. Give it 5 years...

Posted by Anonymous, May 23, 2007 3:55PM

We care because fund managers do not operate 10 year horizons. In 10 years everyone images that they'll be filthy rich and probably doing something else. As fee collectors we have the investment horizon of a rabbit. Today is especially important because we're reaching the end of the month, and funds report their performance on a monthly basis. So there are only a few days left to bag a nice return for May. Everything was going well today until a couple hours ago.

Posted by BSD, May 23, 2007 4:12PM

Partially agree with above (reporting monthly to clients who don't understand your strategy is a questionable practice in my opinion), but it isn't Alan's job to placate us hedgies. Sorry to hear your P&L went sour (but this is why I suggest quarterly reporting and a 2 year lockup).

Posted by BS, May 23, 2007 4:23PM

You get a lot of institutional/FoF interest with quarterly reporting and a 2 year lock? Our investors would laugh us out of the room if we suggested those terms. Then again, we're no SAC (not saying SAC has those terms, just saying if I was I could probably get them).

Posted by BSD, May 23, 2007 4:38PM

We don't like FoF investors for a variety of reasons, but the institutions generally don't mind quarterly reporting (with some we've negotiated a shorter lockup though). Ultimately you hit the nail on the head - if you have the right track record investors will come. In regards to that it's not just how much you make, but consistency of returns. Obviously if your fund's strategy is highly volatile (nothing wrong with that - just a different niche) investors may want more frequent reporting.

Posted by hf, May 23, 2007 6:11PM

Quarterly reporting and 2 year lockups?! Sorry, that won't fly where I am, not with the people I'm doing business with. And I'm surprised so-called 'sophisticated investors' anywhere would buy that, at least in today's market. You sure you're selling to the right people? Hope your compliance guy is paying attention.

Posted by mok, May 23, 2007 6:24PM

just think how things will look at the end of next month!

Posted by LippyTex, May 23, 2007 10:13PM

But what does Brian Hunter think?

Posted by Oil Prices, May 23, 2007 10:37PM

Greenspan works for Bill Gross and Pimco now, it's all about the bonds

Posted by mooch, May 24, 2007 9:16AM

what if Greenspan was short all of the major stock indexes around the world? talking his book........

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