The following post is an excellent example of how a disciplined due diligence process saved an investor from ruin.
If You’re So Smart, Why Aren’t You Rich?
Actually, the formulation of that headline that I prefer these days is the famous inversion by the Nobel economist Paul Samuelson: “If you’re so rich how come you’re so dumb?”
And yes, that brings us promptly to the Bernard Madoff scandal.
But this week Barron’s brings us one: “Living to Tell About Madoff,” an interview with James Hedges (not, I assume, a stage name, although in the circumstances it ought to be), “president and founder of LJH Global Investments in Naples, Fla., who has invested billions in hedge funds and private equity since 1990 through relationships with numerous hedge funds.”
Eleven years ago, Hedges spent two hours meeting with Madoff in his New York office planning to invest a few billion dollars of his clients’ money. He walked out without a deal.
Here are some of the reasons why…
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