Charts & Numbers

“The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking.  These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government.  All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades.  God bless America.”

- Andrew Lahde, Lahde Capital Management

In a shrewd letter to the public (obtained from Portfolio Magazine) Andrew Lahde lashed out at all the ‘educated’ ‘workaholics’ in the world who want to create a legacy for themselves for future generations to remember them by stating “Whats the point?” In this simple context its clear that Lahde has beaten the so-called ‘greatest’ by predicting, implementing, and exiting at the greatest of times.

“Appointments back to back, booked solid for the next three months, they look forward to their two-week vacation in January during which they will likely be glued to their BlackBerries or other such devices. What is the point? They will all be forgotten in 50 years anyway. Steve Ballmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the BlackBerry away and enjoy life.”

- Andrew Lahde, Lahde Capital Management

In my previous post entitled hedge fund returns 1000% in 2007 I wrote about Andrew Lahde (of Lahde Capital Management) and his unbelievable returns in 2007 betting on the Subprime disaster. Since the beginning of the year I have been trying to get information regarding the fund and now I am surprised to find out that Lahde Capital Management has just cashed out.

There is no mention of the profits accumulated throughout the past two years but I predict that they are easily in the 1700% + range (since inception).

“I was in this game for the money…  With all due respect, I am dropping out”

- Andrew Lahde, Lahde Capital Management

Although this isnt the highest yielding return his story must be documented. I am eager to find out more about this fund, inception, or ideas that led to these positions so early on. Maybe a book, or a movie? 

I applaud his actions (including the letter) because he was able to enter and exit the market at near-perfect periods and did not have the ego (or GREED) to continue, which would probably result in him losing everything, eventually, similar to many other funds demise. May we all learn something from his accomplishments.

—-  Link to the letter —-

http://www.portfolio.com/html/assets/AndrewLahdeFarewell.pdf