Commenters have brought to my attention that Jon Corzine might be starting a new hedge fund:
Mr. Corzine, in a bid to rebuild his image and engage his passion for trading, is weighing whether to start a hedge fund, according to people with knowledge of his plans. He is currently trading with his family’s wealth.
If he is successful as a hedge fund manager, it would be the latest career comeback for a man who was ousted from both the top seat at Goldman Sachs and the New Jersey governor’s mansion.
Commenter “JP” writes:
Anyone who gives their money to Corzine has failed both a sanity and an IQ test. The guy has proven that (depending on your interpretation) he will either steal your money, or lose your money through "chaos and porous risk controls" -- and he'll get away with it! You might as well throw your money down the toilet as give it to him.
You really do have to wonder why someone would invest in a Corzine mutual fund; the worst case is that he does to your money what he did to MF Global. The best case is that he takes 20% of the profits and a 2% management fee. Wouldn’t it make a lot more sense to just buy an ETF that tracks some index?
But sadly, I predict that people WILL invest in Corzine’s fund, and he will make a lot of money regardless of whether or not the fund beats the S&P 500. There’s a lesson here in value transference.