Investors Ignore Andrew Lahde at Their Certain Peril – Paul Alar
In Gregory Zuckerman’s book The Greatest Trade Ever, Zuckerman recounts the exploits of the now very famous (and rich) John Paulson and, the not so famous, but equally successful Andrew Lahde, of Lahde Capital, as they made fortunes shorting sub-prime residential derivatives of mortgage backed securities. You have almost certainly heard of Paulson, but Lahde is most likely a different matter.
We believe we have a unique perspective on this moment in history, as we worked very closely with Lahde Capital, which was a small, West Coast hedge fund at the time (it is no longer in existence). We knew Andrew Lahde quite well, as we spent countless hours before and during the sub-prime debacle with him discussing the players involved in the game and how they were inevitably “toast”, which was his favorite term at the time. He positioned his fund so that a catastrophic sub-prime failure would ultimately earn his investors extraordinary returns. Needless to say, his investors were not disappointed. […]
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