Elite Family Hedge funds is exponentially redundant. You have to be elite to have a hedge fund. You have to be even more elite to have one just for your family's investments. With all of the talk about new regulations for investment entities, the wealthy are nervous about sharing the details of their portfolios' contents.
About 50 family investment funds have formed a coalition and hired lobbyists to make their case with lawmakers that they should be exempt from the new rules. The families say their funds are aimed at maintaining wealth, not investing aggressively like private-equity firms or hedge funds, and therefore pose no systemic risk to the economy.
Hmmm, I guess we could trust them. Why would rich people lie? They have nothing to gain of such surreptitious activities. Honesty is what undoubtedly made them wealthy.
Although, investing aggressively is both a very limited and broad term.
One does not have to be aggressive to have used their fund as a pump & dump catalyst for sub-prime loans or the bubble of the day.
One does not have to be aggressive to have received a tip from a friend at the Club and traded on it.
Family business...the Madoff's had a nice family gig going. Of course there was the SEC investigation that never happened, because Bernie was so trustworthy.
Benign hedge funds...hmmm, Pequot had a wildly successful hedge fund. Of course there was the ever so tardy SEC investigation that was delayed due to political influence.
Yes, it's so outside the realm to imagine rich people wanting to become richer. How provincial to suggest that the wealthy would wish to amass more wealth in ways that are anything but inscrutable.
Surely, none of them made a dime funneled through Goldman and AIG. Surely, none of them are profiting from the current raid on the Fed. It's the other hedge funds with people with names like Raj and Bernie and Samberg.
World-wide, there are about 1,000 such family accounts with $100 million or more in assets each, according to a recent study by the Wharton School at the University of Pennsylvania; about half of those accounts have $1 billion or more in assets each. Families need about $100 million in assets to start such a fund, which costs about $3 million a year to manage, the Wharton study reported.
Does anyone remember the Hunt Brothers? The original bubble boys.
If only...