Chasing my dream - Page 7

On November 09 2011 09:11 ulan-bat wrote:
Good luck chasing your dream/money and "working your ass off". Maybe in your mid-40s you'll realize what you did...

Until then, good luck again.

On November 09 2011 12:57 c0ldfusion wrote:


This is it actually.

I've heard many stories about traders, analyst and people in other roles in big funds, particularly those that came out of academia, becoming completely disenchanted with their profession after a couple of years.

Many of these people ended up taking a pay cut and leaving the industry. Turns out money doesn't buy happiness.. who knew...

Andrew Ladhe's Open Letter
Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.

Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, “What I have learned about the hedge fund business is that I hate it.” I could not agree more with that statement. I was in this game for the money. 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.

There are far too many people for me to sincerely thank for my success. However, I do not want to sound like a Hollywood actor accepting an award. The money was reward enough. Furthermore, the endless list those deserving thanks know who they are.

I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. 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 fifty years anyway. Steve Balmer, 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.

So this is it. With all due respect, I am dropping out. Please do not expect any type of reply to emails or voicemails within normal time frames or at all. Andy Springer and his company will be handling the dissolution of the fund. And don’t worry about my employees, they were always employed by Mr. Springer’s company and only one (who has been well-rewarded) will lose his job.

I have no interest in any deals in which anyone would like me to participate. I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life — where I had to compete for spaces in universities and graduate schools, jobs and assets under management — with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.

On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunct institutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government. Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to create a new system of government that truly represents the common man’s interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft’s near monopoly. I believe there is an answer, but for now the system is clearly broken.

Lastly, while I still have an audience, I would like to bring attention to an alternative food and energy source. You won’t see it included in BP’s, “Feel good. We are working on sustainable solutions,” television commercials, nor is it mentioned in ADM’s similar commercials. But hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products. Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term. The original American flag was made of hemp fiber and our Constitution was printed on paper made of hemp. It was used as recently as World War II by the U.S. Government, and then promptly made illegal after the war was won. At a time when rhetoric is flying about becoming more self-sufficient in terms of energy, why is it illegal to grow this plant in this country? Ah, the female. The evil female plant — marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country. My only conclusion as to why it is illegal, is that Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other additive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers. This policy is ludicrous. It has surely contributed to our dependency on foreign energy sources. Our policies have other countries literally laughing at our stupidity, most notably Canada, as well as several European nations (both Eastern and Western). You would not know this by paying attention to U.S. media sources though, as they tend not to elaborate on who is laughing at the United States this week. Please people, let’s stop the rhetoric and start thinking about how we can truly become self-sufficient.

With that I say good-bye and good luck.

All the best,

Andrew Lahde

On November 09 2011 13:26 flanksteak wrote:


This is true. You're probably referring to that Andrew Ladhe's open letter? You can find it all over the web, so I'll just post it here. If it's too long, mods please just remove it Not exactly what the OP is doing, but basically it's a guy who used to
run a hedge fund, and now he's calling it quits.

http://arstechnica.com/civis/viewtopic.php?f=23&t=102181



Lots of interesting things in his letter; but to your point about money not buying happiness - you're right, but I would a million times over choose to have sufficient bank roll before tackling the more existential issues, lol.

Unrelated to your post, and just thinking out loud here: I'm not saying people can't be happy with their work - if you have something like that where your hobby/interests are aligned with making a living, then that is fucking awesome and you should never take it for granted. But for the vast majority of people (like me), average wage slave folks who will probably live in a cubicle until they are 60; if it doesn't matter to you what type of work you do and you've "lost your passion", then you fucking better make sure you get paid. I imagine the OP's plan is to bust his ass for like a decade and quit when he's got enough - GOOD. I hope he succeeds.

On November 08 2011 13:29 Roe wrote:
Just a short question but why would you want to become something like that?

On November 09 2011 09:01 Sable42 wrote:



But that is the whole point of the analogy, which you appear to be missing. Trading financial securities is pretty much the same as trading physical goods. Just because the good is more of an abstract idea and not tangible does not mean you are not matching up willing buyers and sellers. Nobody is being forced to buy or sell these securities.

On November 09 2011 22:10 Yenticha wrote:
just before you read my post: I do know about finance/trading, did my masters partly in this subject. I have many friends who work for banks, in quant positions etc.

I may be mistaken, but one big argument in favor of trading as "not a bad thing" is that there are people willing to buy and to sell. No one is being forced.

I don't see how this makes trading good. When some dictator gives money to mercenaries to kill civilians who are demonstrating, its an exchange "money vs service". And I think we can agree that neither the mercenaries or the dictator are "good" people.
I am *not* saying that trading is as bad. I am just saying that sometimes there are people willing to buy/sell for the wrong reasons. And there are also stupid people buying stupid things. This is why laws exist. So that the only rule in the world is not money (hopefully?).

Closer to the topic: when a friend of mine, being an engineer, works on some new missile, I dont tell him he's evil. I just wonder why he's not putting is skills into something more rewarding "ethically". It does feel good to do a job that is even slightly beneficial to society, and that does not starve or kill anyone. And traders are educated enough to be able to pick, if they wanted to, such a job.