Dec 13 2007
Short-Term Capital Mismanagement LLP Fund Update
The Hedge Fund manager has issued a year end update. Here are some snippets:
Our Widows & Orphans Enhanced Money-Market Fund is under investigation by the Federal Trade Commission. It seems our use of the word “enhanced” is deemed incompatible with “real sorry we gambled that dollar you gave us for safekeeping on collateralized-debt obligations and ended up losing a cent or seven. Or 20. We’re not entirely sure yet…’”
…You know the saying “pay peanuts, get monkeys”? It isn’t true. We have been paying our traders peanuts since the fund’s inception, and it turns out that the annual rate of nut inflation is killing us at 11.5 percent given how low our investment returns have been.
