There is an article in to-day Sunday's Toronto Star about the perils of handing your money to someone else to manage, even legends like Jack Lawrence and Bernard Madroff.
Jack Lawrence Cautionary Tale
- Thread starter Rockslinger
- Start date
I read the paper version of the Star. Starts on page A1 and continues on page 15. Jack Lawrence was a legend on Bay Street. Bank of Montreal bought his firm. He opened his own hedge fund. Investors were attracted to his fund by his stellar reputation. The fund lost 80% of its value in 2008.
Yes, I heard about it when it happened and it was also mentioned in the article in to-day's Star. The Star tried to get an interview with his partner (Mr. Ravi Sood) but he wasn't in a very talkative mood. Jack was a very troubled man, his fund was crashing and burning, angry investors and an acrimonious divorce from his second wife.
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80% is a very high loss rate. During that period the general markets contracted around 45%. His fund lost almost twice that.
Did you read the Star article? No one said he did anything illegal but those "disclaimers" that his investors were asked to sign are not very ethical.
I did say "I doubt it" but that was supposely a simple take off for an experience pilot. What went wrong? Anyway, I "hear" you and will delete any speculation from my post. I also "hear" you about him loving his son but he left one of his 6 children (from 2 failed marriages) out of his will. Did he not love that child?
Not trying to pick a fight with rubmeister nor to disparage the reputation of the gentleman who is the subject of the Star article but I learned a long time ago not to put anyone on a pedestal nor to believe the public image that a person or corporation likes to project. My sympathies lies with "Mr. X" and Peter C. Newman who lost a ton of money investing in this man's fund. Yes, it is a cautionary tale. Anyone who ignores it, do so at their peril.
When I read the thread I suspect you are talking about the pornstar from Belgium.
http://en.wikipedia.org/wiki/Jack_Lawrence_(pornographic_actor)
Having said that, I am probably not "exclusive" and loaded enough to get their attention to manage my hard earn money.
BTW, sometimes you have to wonder how many of their clients getting equally wealthy like the advisers. You get the feeling their bulk of their wealth came from the proceeds of selling their "books" to big financial institutions where the honchos are more than willing to pay top dollar to bulk up their AUM.
It's kind of reminding me big oil companies taking over the medium size oil exploring firms instead of doing organic growth.
http://en.wikipedia.org/wiki/Jack_Lawrence_(pornographic_actor)
Having said that, I am probably not "exclusive" and loaded enough to get their attention to manage my hard earn money.
BTW, sometimes you have to wonder how many of their clients getting equally wealthy like the advisers. You get the feeling their bulk of their wealth came from the proceeds of selling their "books" to big financial institutions where the honchos are more than willing to pay top dollar to bulk up their AUM.
It's kind of reminding me big oil companies taking over the medium size oil exploring firms instead of doing organic growth.
