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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (41483)	12/30/1998 11:46:00 AM
From: Knighty Tin	Respond to of 132070

Skeets, Man, you don't understand hedge funds. They generally calculate bonuses based upon the price paid by the participating partners. Since they totally destroyed the old partners, the new partners are the banks who bailed them out. The crap they bought rallied in price after AG gave the banks a "nudge, nudge, wink, wink, I think that spread may work in the future," tip. Not enough so the banks could unwind, but enough so they could show fake profits on their books. I.e., Chase's eps. Under the hedge fund contract, the managing partners are due 20% of the profit the participating partners earned. You can almost always make money managing a hedge fund from some point to some point. In normal hedge funds, you don't get that chance as the ruined people bail and you have to sell what is left. In LTC, by saving the fund, the partners got a chance at a "do over." <G> MB