Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FBI investigations in thepast have found that many of Wall Street's top firms regularly spent millions of dollars a year on booze, drugs and hookers to entertain important clients and in-house executives.
Wall Street hedge-fund trader Turney Duff cut his teeth at The Galleon Group long before the firm’s founder, Raj Rajaratnam, wound up behind bars for insider trading. In a revealing new memoir, “The Buy Side: A Wall Street Trader’s Tale of Spectacular Excess,” Duff shares his front-row seat to the intoxicating world of high-stakes investment and the exorbitant after-hours culture of drugs, booze and sex while at Argus Partners.
Reply to @Anna: It's hard to disagree about the moral rectitude here. It's a sad day for his family and friends. But are we to start monitoring the private lives of our fiduciaries? Do you intend to inquire as to their smoking, drinking, gambling, and marital fidelity? How could you monitor such stuff anyway? The guy got caught. Many don't. (You might argue that makes him dumb.) But, as long as his fiduciary responsibilities to shareholders are upheld in a competent fashion and according to applicable law, I'd be hesitant to dump the fund based on a single moral failing. (When someone complained to Lincoln about Grant's excessive drinking on the battlefield, his response was along the lines: "Find out what brand of whiskey he drinks so I can buy some for all my other generals.":-)
By contrast, John P. Hussman is by all accounts a highly moral and decent individual. From the linked article: "I spend almost all of my time in one of three activities - finance, family or charitable projects through the Hussman Foundation." http://www.advisorperspectives.com/commentaries/hussman_13111.php But, I wouldn't want to own any of his funds!
The issue goes beyond fund managers. Loved ones have wrecked their health over the years through prolonged heavy smoking. With chagrin I noticed recently that tobacco marketer Phillip Morris is a top holding of my Oakmark Equity and Income fund. It's an investment both distasteful and morally incompatible with my views. The thought of selling the fund occurred to me ... but I didn't. Regards.
But smoking isn't an illegal activity. We make a big stink about those that overstay here and work illegally and label them as law breakers and so forth. So I don't care if a Fund Manager smokes or spends some weekends at the Gun Firing range or Duck Hunting.
Sure a lot of us don't care who a Fund Manager or your Stock Broker has sex with but the issue is what is legal and not legal. So if the issue of whether Prostitution should be legal or not is a *different topic.* What if a Fund Manager/Stock Broker elicited sex with someone underage? Are you also going to say who cares - that's his business as to who he sleeps with? Again, it's not just a moral issue of who you sleep with --- I don't care if a Fund Manager is doing the 69 with his old college buddy's ex-girlfriend - the greater issue is breaking the law from eliciting sex. Why don't you just do it where it's legal???
Again, if you disagree with the law or the minimum age for sexual consent in your state - then that is a different topic altogether.
Furthermore --- I have no problem personally going to a Golf tournament to see Tiger Woods and other great golfers. But there is a big difference in terms of whether a big brand company should continue to invest/partner/market in Tiger Woods right after his personal fiasco with his wife and many other women - the risks are high and if I were the CEO then I would probably bow out like what many companies had done. So many investors in these Funds or Private Investment firms were prominent Pension Funds and professionally I think that they had to disassociate themselves from their investment in this firm until things boil over. Quite often on Wall Street it's more than just prostitution - it can also involve drug parties - so how big is the issue?
Reply to @Old_Joe: Thanks for keeping me on the ball. Always happy to check spelling on a big word like that one. Matter of fact, you've motivated me to look for some even bigger ones I can throw out. Take care.
Comments
http://www.telegraph.co.uk/news/features/3635727/Jordan-Belfort-Confessions-of-the-Wolf-of-Wall-Street.html
Wall Street Escort Wishes She Could Tell Clients: "You’re Really Small And You’re Bad In Bed"
http://www.buzzfeed.com/buzzfeedshift/wall-street-escort-wishes-she-could-tell-clients
Police bust prostitution ring catering to Wall Street
http://www.reuters.com/article/2011/07/20/us-crime-prostitution-idUSTRE76J73N20110720
Cocaine and Hookers for Wall St. Execs, Subsidized by You
http://www.thefix.com/content/wall-st-high-rollers-caught-pants-down Wall Street CEOs, investment bankers charged prostitutes on corporate cards, madam says
http://abcnews.go.com/Blotter/WallStreet/story?id=6813806&page=1
Former hedge fund titan bares all in titillating Wall Street memoir
http://nypost.com/2013/05/30/former-hedge-fund-titan-bares-all-in-titillating-wall-street-memoir/
By contrast, John P. Hussman is by all accounts a highly moral and decent individual. From the linked article: "I spend almost all of my time in one of three activities - finance, family or charitable projects through the Hussman Foundation." http://www.advisorperspectives.com/commentaries/hussman_13111.php
But, I wouldn't want to own any of his funds!
The issue goes beyond fund managers. Loved ones have wrecked their health over the years through prolonged heavy smoking. With chagrin I noticed recently that tobacco marketer Phillip Morris is a top holding of my Oakmark Equity and Income fund. It's an investment both distasteful and morally incompatible with my views. The thought of selling the fund occurred to me ... but I didn't. Regards.
Sure a lot of us don't care who a Fund Manager or your Stock Broker has sex with but the issue is what is legal and not legal. So if the issue of whether Prostitution should be legal or not is a *different topic.* What if a Fund Manager/Stock Broker elicited sex with someone underage? Are you also going to say who cares - that's his business as to who he sleeps with? Again, it's not just a moral issue of who you sleep with --- I don't care if a Fund Manager is doing the 69 with his old college buddy's ex-girlfriend - the greater issue is breaking the law from eliciting sex. Why don't you just do it where it's legal???
Again, if you disagree with the law or the minimum age for sexual consent in your state - then that is a different topic altogether.
Furthermore --- I have no problem personally going to a Golf tournament to see Tiger Woods and other great golfers. But there is a big difference in terms of whether a big brand company should continue to invest/partner/market in Tiger Woods right after his personal fiasco with his wife and many other women - the risks are high and if I were the CEO then I would probably bow out like what many companies had done. So many investors in these Funds or Private Investment firms were prominent Pension Funds and professionally I think that they had to disassociate themselves from their investment in this firm until things boil over. Quite often on Wall Street it's more than just prostitution - it can also involve drug parties - so how big is the issue?
Anna you are so right. This guy's a LOSER. Stay away.
Here's some meanings for peccadillo. Regards
http://thesaurus.com/browse/peccadilloes