Posted by: admin | October 23, 2008

Farewell Letter from 37-year-old retiring Hedge Fund Manager

On Oct. 17, 2008, Andrew Ladhe, the 37-year-old founder of Ladhe Capital, wrote a farewell letter to his clients (and the WSJ), announcing his retirement and the closing of his fund.  Ladhe said he had hated the hedge fund business and had only been in it for the money.  After declaring he would no longer manage money for other people, because he had enough of his own, Lahde said that instead he intended to repair his stress-damaged health; he made it clear he would not miss the financial world.

Ladhe Capital is was a California hedge fund that returned more than 1,000% in 2007 betting against US credit default swaps and subprime home loans, making it one of the world’s best-performing funds of all time.

Click here for link to Andrew Ladhe’s farewell letter

My favorite part:

I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths.  Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.

This guy is a genius. Basically he made some very smart investments prior to the subprime loan financial crash that made him and his investors a ton of money, and then decided to quit while he was ahead of the game.  He was content with what he had done and chose to enjoy the rest of his life.

Amazing.  From now on, my goal is to do the same.

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Responses

  1. […] my prior post about Andrew Ladhe’s farewell letter, I was searching for more information on his hedge fund, Ladhe Capital. I came across his February […]


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