For its September issue, Absolute Return is running a "hedge fund report card." The magazine polled hundreds of investors, asking them to rate their respective funds based on factors that included alignment of interests, alpha generation, independent oversight, infrastructure, transparency and liquidity terms. The results put York Capital at number one, followed by Bridgewater Associates, Bain's Brookside Capital, Adage Capital and Cayon Capital overall. Bringing up the rear were SAC Capital, TPG-Axon, QVT Financial, Citadel and Cerberus Capital in dead last. In addition to asking the investors to simply provide scores, AR also afforded them their opportunity to air their grievances. Let out what they've been holding in, etc. For instance, someone with Citadel apparently doesn't think Ken Griffin treats his clients right, noting that KG "holds his investors somewhere between indifference and disdain." Which doesn't really seem that fair!
A) Kenny reimbursed 500M in fees after the year that shall not be named and B) I know what this person is hinting at and does he in fact have photographic evidence of KG performing a Roman Helmet or clown facing a group of investors? Unless he does I don't think this is valid. Nevertheless, Anonymous Investor is hurting, so is there anything Griffin could do to show he really does care? Would breakfast in bed do the trick? Or hey! How about he recreates the walking over the crack ad but this time he's carrying a bunch of clients on his back? Suggestions are welcome at this time.
In addition to the Mr. Sensitive, at least one person who's never brought it up to Steve's face but only has the balls to say it through a voice scrambler is of the opinion that SAC's fees are "extremely high and transparency poor." So what should Stamford do about that? I'll tell you what: raise the fees from 3&50 to 5&75 and let it be known that the next time anyone makes a peep about any of that, and every time thereafter, they go up 5 percent. And you want to know something else? For airing the fund's dirty laundry in public, when you're supposed to keep that shit in the family, this is a little preview of what's in store for everyone at the next investor dinner.