I saw this video today, and this quote from Jim Cramer at around 5:08 simply blew my mind:
“What’s important when you’re in a hedge fund mode, is to not do anything remotely truthful. Because the truth is so against your view that it’s important to create a new truth.”
My jaw literally dropped. It gets even… better?… after that.
Dennis T Cheung is currently a Program Manager at Microsoft on Bing. You can reach him by clicking here.
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2 Comments to “How hedge funds “create a new truth” – Jim Cramer”
March 16th, 2007 at 6:09 am
Dennis,
I run a hedge fund and have a book on market risk and hedge funds coming out in April (I will give you my complete name if you e-mail me with assurances you won’t use my name anywhere). What he is saying here is not correct in the way he is presenting it. Some very large hedge funds may do this on occasion — SAC comes to mind — but few funds do. And you can’t do it if you are a small fund, like his was.
But his objective at this point in his life is not to be trughful, but to sound like he is “on the inside” and create good TV.
March 19th, 2007 at 7:42 pm
That’s ok – no email necessary. I believe you.
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