johaneriksson.se

President Obama has been slamming hedge fund managers for not sacrificing hedge fund money in order to save Chrysler from bankruptcy. Charles S. Asness, one of those managers, is not happy about it and has written back. The letter contains a whole lot of truth, and is well worth reading in its entirety. I agree with Russ Roberts that this is the best section:

Let’s be clear, it is the job and obligation of all investment managers, including hedge fund managers, to get their clients the most return they can. They are allowed to be charitable with their own money, and many are spectacularly so, but if they give away their clients’ money to share in the “sacrifice,” they are stealing. Clients of hedge funds include, among others, pension funds of all kinds of workers, unionized and not.

It’s easy to forget this when your job is to spend other people’s money.

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