Hedge Fund Manager Phil Falcone Slams The Industry


Hedge Fund Manager Phil Falcone Slams The Industry


hedge-fund

In 2012, the US Securities and Exchange Commission charged hedge fund manager Philip Falcone with securities fraud. In 2013 he was barred from the securities industry for at least five years. Now speaking for the first time since receiving the ban, he says there is "an awful lot of mediocrity" in the industry today.

Falcone rose to prominence shorting subprime mortgages during the financial crisis, making him a  billionaire, although he no longer makes it onto the Forbes list of big time dollar earners.

"There seems to be a lot more liquidity in the market now than there was in 2008, when I was involved in 2008. There were times that it didn't — it felt like everything was going to completely collapse. And I don't ... I don't have that feeling right now," Falcone says.

"I think, obviously, with the oil and gas debacle, that's just kind of pushed the whole market lower. But I think, in general, there's an awful lot of mediocrity out there. And I think that's one of the other problems, that there's a lot of club trading where people don't have any creativity. And it's creating kind of a vacuum, because everybody's in the same names" .

He also says that from an investment and hedge fund perspective, he would be very wary of investing money simply because of the number of hedge funds managers.

"What have they done? Do they have their money in with it?" And, you know, "What's their background? Do they have experience with this?" And I think there's not a lot of experience relative to the number of funds".

According to data from Hedge Fund Research, there are 10,000 hedge funds in the industry, with 6,825 new hedge funds launched since 2009.

This year, the average hedge fund is down 3.25%.

Read this next:

Must Read

This Huge Company Is Harnessing Mindfulness In Its Employees

This Huge Company Is Harnessing Mindfulness In Its Employees

  While some businesses have gyms and cafeterias for their staff, cloud-based software company Salesforce is giving it employees the silent treatment. T...

Are Those In-Office Perks Really That Good?

Are Those In-Office Perks Really That Good?

Having your employer give you a rent subsidy instead of a pay raise may appear to be a pretty good deal on the surface, but it may not be the best thing for...

3 Big Budget Mistakes To Avoid

3 Big Budget Mistakes To Avoid

Budgeting is all well and good when you are trying to get your financial life into order, but many people just can't get the budget to stick. They fall vict...

5 Personal Success Books You Need To Read

5 Personal Success Books You Need To Read

[caption id="attachment_93" align="alignnone" width="1698"] Books HD[/caption] One of the easiest ways to succeed in any venture is to have a mentor you can ...

6 Reasons Why You Should Start A Savings Account Today

6 Reasons Why You Should Start A Savings Account Today

A recent survey showed that 40% of Americans do not have enough money squirreled away to see them through an emergency as small as an unexpected auto repair. ...

Tumblr Is Tumbling Yahoo’s Purchase Expectations Out The Door

Tumblr Is Tumbling Yahoo’s Purchase Expectations Out The Door

Tumblr is proving not to be the cash cow Yahoo thought it was going to be , hinting it may write off the entire goodwill value it paid to purchase it. In...

Guy Spier Questions Value Financers

Guy Spier Questions Value Financers

Aquamarine Fund founder and value investor Guy Spier, founder is questioning the value of and the number of financiers in the work force today, including hi...

China's Meltdown: What Exactly Is Going On?

China's Meltdown: What Exactly Is Going On?

China's financial slowdown hasn't made headlines of late, but that doesn't mean it’s over and that even residue effects won't spill into global growth and...

It Might Be Best To Hold On Before Acting On The Retirement Lure

It Might Be Best To Hold On Before Acting On The Retirement Lure

When one gets into their sixties, the idea of retiring becomes more and more attractive. But think long and hard, because the sooner you retire, the less social...

Your House Sale Profits Can Be Eaten Up In Paying Capital Gains Tax

Your House Sale Profits Can Be Eaten Up In Paying Capital Gains Tax

They say there are only two certainties in life - death and taxes. The problem is that unlike death which is an one off event, there are many forms of taxes tha...

5 Tips For the On-The-Side Business Builders

5 Tips For the On-The-Side Business Builders

Having a on-the-side small business, which you work mostly on-line after having spent some quality time with the family, while the 9 to 5’ers are sitting down...

5 Debt Pitfalls To Watch Out For

5 Debt Pitfalls To Watch Out For

We all know, especially on 20/20 hindsight, how we got and get into debt - medical bills, losing a job, liking shopping too much etc. But there are also the not...