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From Lahde, a Not-So-Fond Farewell
by Christopher Glynn ,Senior Reporter, October 17, 2008

Sneering and snide, Andrew Lahde in a letter [read here] announcing his retirement heaped derision on the finance sector while expressing relief at leaving behind the stress of being a hedge fund manager.

Lahde rose to prominence when it was learned that his Lahde Capital Management bet against subprime mortgage—the security that has laid waste to the finance sector. That call marked Lahde, along with hedge fund manager John Paulson, as a member of an elite few who profited mightily from the subprime mortgage collapse. While Wall Street as well as the hedge fund industry reeled, New York-based Paulson & Co. quadrupled its asset base. Lahde, meanwhile, posted a 1,000% gain.

But unlike Paulson, Lahde has no intention of remaining a member of a profession that made him rich; a profession Lahde, it would seem, has no respect for.

“I was in the game for the money,” Lahde wrote. “The low-handing fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking.”

Those “idiots,” according to Lahde, went on to run AIG, Bear Stearns, Lehman Bros. and the like. “God bless America,” Lahde wrote.

He went on to mock the notion that he is retiring with “such a small war chest.”

“I will let other people try to amass a nine, ten or eleven figure net worth,” he wrote. “Meanwhile, their lives suck.”

Lahde has “no interest” in managing money other than his own. Rather, he said relished the chance to “repair my health, which was destroyed by the stress I layered onto myself” as a hedge fund manager, “as well as my entire life—where I had to compete for space in universities and graduate schools, jobs and assets—with those who had all the advantages (rich parents) that I did not.”

The final paragraph of the letter is devoted to questioning the illegality of marijuana, which, unlike alcohol, “does not produce a hangover” or “result in bar fights or wife beating.”

  
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Poll Of the Week
  Poll of the Week
by HedgeNews Editors , January 28, 2010
 
 
13 Comments
What do you think of Lahde's letter? Is it outrageous, obnoxious, spot on? Tell us now.
POSTED BY Editorial Staff at 10/17/2008 2:39:01 PM

I support the letter completely. This government is totally out of control and the regulation of plants like hemp and marijuana are the last things we need to worry about.
POSTED BY Bill Jackson at 10/17/2008 2:55:35 PM

What a pompous ass, with no respect for the industry that made him millions. This is the equivalent of a hall of fame pitcher saying that baseball is a stupid game, played by idiots, and watched by buffoons, that the game meant nothing and he was just in it for the money. There are thousands of hard working, every day people who work in the financial services industry who honestly do care about taking care of the savings of their clients and its not their fault that management adopted some policies that cost the rank and file their job and their savings. He says he's not gloating? Yeah, and I'm not pissed off about getting laid off last month.
POSTED BY John Dabney at 10/17/2008 3:58:07 PM

TOTALLY agree with his letter.
POSTED BY Dan at 10/17/2008 4:24:31 PM

@Dabney He's not insulting the industry, he's saying its too prone to being headed by short-sighted, greed-blinded idiots who don't deserve the positions they attain. And honestly with the recent developments, I don't know how you can argue with that.
POSTED BY Gurbir Behniwal at 10/17/2008 6:32:48 PM

Well done Mr Lahde! You grabbed the beast by the bollocks and made it give you your dues back...with interest. Then you had the honesty to cry out "Look! The Emperor Wears No Clothes!" while flipping the bird on your way out the door. As a very cynical 43 years old (who happens to agree that everything you said in your letter is true) I have not been this encouraged in many years. Live long and prosper.
POSTED BY Paul from Oz at 10/17/2008 6:33:10 PM

Great to see someone in the industry speak up! I love the industry, but there are countless morons involved in it! but...I agree, all the better for me. God bless America lol.
POSTED BY AJ at 10/18/2008 12:07:47 AM

whats this got to do with respect for the industry? People who make up the industry do not respect the people who make up the country, how can they demand respect. It sucks that you lost your job, but actions have consequences, and unfortunately you were collateral damage. Look to the leaders and decision makers, not the one who got out the wiser, and has a small glimpse of what this business is about.
POSTED BY michael at 10/18/2008 12:28:21 AM

Honesty. Now that's a precious commodity. People should get paid for trading that and punished for lies. Fat chance that. Weed would be more valuable than an Ar-bust-o.
POSTED BY malcolm at 10/18/2008 4:30:55 PM

I found this email stupid. This is just one guy of many who have hit a huge score at HF at one time or another. Most of them stay low key. If they leave the game, they do so in a mature fashion. I don't mind the f-you to government, but honestly half your goodbye letter on marijuana? I think he was smoking it when he wrote the letter. Of course I agree marijuana should be legalized, but that was totally out of place in this letter. Of course, when you're writing to investors you just gave a 400% return to after fees, you can say whatever the hell you want.
POSTED BY oc at 10/20/2008 5:57:01 PM

The joke is on everyone, including Lahde isn't it? Ladhe may have retired with millions but he made the great Faustian bargain doing so. The joke is on the hedge fund industry because there are rats still stuck in the maze. And the joke is on all the taxpayers for bailing out all the financial insitutions that got us into this mess. Rather than growing hemp, we should all have a national day of laughter to celebrate the greatest joke of the last 50 years.
POSTED BY scott at 10/21/2008 2:40:11 PM

I agree with Mr. Lahde completely. Good for him. Respect for the industry? Not a chance. All of this could have been easily predicted because it's happened before. But the industry was making quick money and didn't give a damn about long-term consequences. Bad loans = eventual crash. I don't need a Harvard MBA to figure that out and most of them didn't. I have yet to see an Ivy Leaguer who has a bit of common sense and doesn't feel entitled to anything he/she wants. They never look at consquences or possible outcomes, just the immediate result. Most of them think so much of themselves they think they know it all, so they are never smart enough to ask the right questions. My latest fave putdown was when one of these clowns wanted our attorneys to write an agreement with a specific provision he had dreamed up. The attorney just calmly stated, "No, I don't think so. That's illegal in all 50 states." This idiot still tried to argue that maybe we could get around it. The other people on the conference call quickly disabused him of this notion. He still didn't get it. "I want it, I should have it." This time he didn't get it.
POSTED BY Kaliwind at 10/21/2008 6:09:03 PM

I agree with all the above negative comments uttered above plus my own. Our two party system of government which is populated by professional pimps who continue to pander for our votes is our real problem. Instead of electing BS's, we need people schooled in problem solving instead of problem making. Less lawyers and MBA's, more engineers as in China. We need Suze Orman and the resurrection of Scrooge to say no to spending by our professional political pimps. We need term limits on all politicians.
POSTED BY Dennis Haro at 10/22/2008 5:30:59 AM
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