Pequot giving up

I know people who are gloating over this. The media loves it - another high flyer going down. Another rich fund manager knocked out. Arthur Samberg deserves it. The SEC should hit them hard.

Actually it’s unfortunate. Not only will this create more job losses in the financial industry, but it’s another step toward general mediocrity in the asset management space. These guys were legends – 16.8% net annualized return over 22 years. These types of managers are disappearing, only to be replaced by large institutional mediocre players chasing AUM rather than returns.

Here is the last Pequot letter to investors: