Tuesday, November 25, 2008
- It uses greater than 50:1 leverage
- Is opaque in its holdings, doesn't have to disclose them to congress even though it is an onshore organization
- Uses various quantitative and qualitative strategies with some of the brightest minds
- Is growing in assets like crazy over 200% in the last few months due to its wild popularity
- Management shifts around every couple of years
- Thinks very long term but is funded mostly short term and will have to roll over a large portion of it assets in a few months
- Has access to capital almost for free
- The worlds smartest a and largest investors have been clamoring to participate in its recent "offerings"
- Charges no maintenance or management fees
- Has a very long track record of success
- Has no restriction on who can invest, young old or feeble
- Technically it doesn't have currency risk ;)
- You have probably already guessed that the "fund" is the US federal reserve and if you hold dollars or dollar based assets you are along for the ride...
Thanks, Nick for a little comic relief.