Hedge fund managers drive innovation and bubbles: Saft
By Chris Clair
Thursday, April 17, 2014
Reuters columnist James Saft says self-serving fund managers buy the latest bubble stock so their returns look good but as a result drive innovation and create bigger bubbles. "The back story is that when bubbles, which usually have at their core real innovation, take off, money managers feel forced to get on the train or see their relative performance lag the rest of the market even when they suspect it is going to be a disaster in the end. That's their fault for acting in bad faith and protecting their career over your investment, but it's your fault because you always fire money managers who lag in a bull market."
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