There was a fascinating segment on Closing Bell about hedge funds. The two guests were Jason Mandel from HM Fund.com and Richard Bove who is a brokerage analyst at Punk Ziegel.
Mr. Mandel continually promoted why people should own funds of funds, the thing he sells for a living and Mr. Bove countered every time about how expensive funds of funds are.
I was reminded of a joke about the worst five words any CEO can hear, "60 Minutes on line one."Mr. Mandel got his ears pinned back. As I heard it, his argument was just a series of salesy cliches. Mr. Bove made him look foolish.
I knew Mr. Mandel was in over his head when he said owning just one hedge fund is like owning one stock. Really? I attribute that one to nerves but nonetheless he made a terrible case for the product.
For all I know he may be very smart, get great returns for clients and maybe we should all have our money in funds of funds? I tried to get more info from the site but you need to register just to read the About Us page.
Wikinvest Wire
7 comments:
Maybe we should own funds of funds of funds of funds.... Sounds like the more, the better!
If he was serious, he should just post the returns for the last 5 years and cut the crap.
For me, the bounce today (after the little Cessna scare) tells me the market is being "The Little Engine That Could", working from the "think I can" up to the "Know I can"...
I'm using an ETF.
Chugg, chugg, chugg....
Fund of funds, oi vey. If the majority of standard funds have trouble beating their index by more than their expense ratio what's a fund of funds going to do? How would you benchmark the performance in the real world? Personally I've only seen one fund-of-funds that had a respectable benchmark, PIMCO's All Asset: Still expensive but at least its fundamental goal of beating the CPI by 5% gives you something to tie a flag to.
But the markets a good little engine right now in any case: Could be a nice summer rally here. Good deal, I was hoping to have something to sell my weaker names into.
I am a client of Mandel's firm. I've made extraordinary risk adjusted returns over the past few years. His firm offers innovative products like guaranteed principal fund of funds and insurance premium financing limited partnerships. Mandel's site is passcode protected because that is the law for a hedge fund. Just fill out a question or two and get a password. Mandel is a terrific money manager. The S&P 500 Index hasn't made me any money since the '90s. Mandel consistently make great risk-adjusted returns. His high volatility performance on TV is nothing like the low volatility return stream that he generates me each year.
Mandel has really found a great arbitrage opportunity lately. His newest fund, the HM Ruby Fund, LP, is not a fund of funds but rather it is an insurance premium financing strategy. He made me 1.5 to 2% a MONTH for the past few years. Mandel is an absolute financial genius.
Rodger:
Your financial advice has ruined my retirement plans. I wish I never read your blog. I started buying all the crap you told us to buy and now I have lost a huge chunk of my net worth.
Please close up shop and this horrendous website for the sake of others who still have a chance to retire one day.
This fund is a scam a scam. All their earnings are unrealized accounting profits. I would never trust a fund that show positive returns when all the transactions are "buys" and no "sells".
No volatility, constantly high returns, up even in a down market. Sound familiar? It should.
Asset backed lending is not a scam. Have you ever heard of GAAP accounting? Their firm uses Rothstein Kass, a top hedge fund accounting firm. The only risk in the strategy is that you could end up owning the collateral during a credit crisis.
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