Amazing, but true. A group of investors is creating International Equine Acquisitions Holding, a horse hedge fund. The group is raising $100 million as seed money to buy, sell, and breed horses. How is this a hedge fund? Are they hedging risk? Do they have a unique investment strategy (well, maybe..)? Seasoned portfolio managers? No, not exactly. How are they a hedge fund you say? Well, they are collecting management and performance fees. OK. Sounds good to me.
Earlier this year I also read how a minor league pitcher was selling $20 shares in his future (which at 25 years, I believe, does not look as good). He eventually returned the money, a total of $36,000 collected, due to Major League Baseball and Union concerns. Apparently he and his advisers are still trying to make it work. Not sure that he called himself a hedge fund, but he might as well have. At least then he can take 2/20 and tax some income (sorry, gains) at 15%.
Back to reality for a moment - does this mean we have hit a top in the hedge fund industry? Doubtful, but is does make you worry. It will certainly get the attention of Congress.
Horse and Ballplayer Hedge Funds
Posted by Bull Bear Trader | 4/22/2008 11:28:00 AM | Hedge Funds | 1 comments »
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I like the idea of ballplayer hedge funds. Maybe hedge funds can own the basaeball players instead of the teams. At least then we could get the teams to pay for new stadiums instead of taxpayers. This would have to be the ultimate fantasy baseball league because it wouldn't be fantasy at all. Then again I am known to take things farther than intended. Although wind derivatives do exist!