This post covers a theme I’ve discussed on many occasions over the past several years, namely how “alternative asset managers” are making enormous sums of money by ripping off public pensions as well as college endowments. Send this to anyone who naively tells you we live in a meritocracy. The sad truth of the matter, is we operate within an economy which incentivizes all of the worst types of behavior, where people can earn millions of dollars a year while failing.
Don’t believe me? Read the following excerpts from a recently published piece in The Chronicle of Higher Education, How Colleges Lost Billions to Hedge Funds in 2016:
A peculiar thing happened in 2016. While the Dow Jones industrial average grew by more than 13 percent, college endowments saw nearly a negative 2 percent rate of return. The worst endowment performance took place at the nation’s wealthiest private institutions. Harvard’s endowment alone shrank by $2 billion,…
