The Clawback Index: How will it Change the Game?

Back to business today boys. After's Saturday! I want to address two (IMHO) key issues for the finance world going forward. These issues will specifically effect those of you entering Wall Street soon and those who have hit the ground running recently. Both issues were addressed in the online WSJ over the last 24 hours. Here they are:

1) The Clawback

Irving Picard. Here's a name most of you don't know, but should. He is the trustee in charge of recovering money for Madoff's ponzi victims...


Arguably, the archetype of a new sort of BSD going forward.

To this point, Mr. Picard has recovered a whopping $1.5 billion for Madoff victims and is now looking to eek out $69 million more before his statute of limitations window closes.

Mark my word, fellas. Clawback is a word you'll be hearing a lot more of in the future. Though many of us don't think of it as such it could grow into an investment vehicle of its own sort.

followed by the seemingly unrelated...

2) Rise of Index Fund Dominance

Well...perhaps this isn't the most accurate title. Though a very strong argument is laid forth as to why index funds will become tougher to beat by the individual investor...the underlying point is really that which we all fear...

beating the market...already a tough nut to only going to get harder

The reason I bring up these two issues at the same time is that I know many of you guys dream of the green pastures of Hedge Funds and Portfolio Management...

I am not saying that this particular future is an impossible dream, I just think you guys should consider alternatives...

Changing environments and dynamics offer new opportunities. Naturally, it's on you to figure them out. Returns on equity investments will inevitably continue to dwindle.

Conversely, many an attorney (just ask Harvey R. Miller) will seek new found wealth in clawback battles which (again, IMHO) have not even begun to brew.

The real question is...

what will you do? ...

In order to become the success you dreamed of becoming, now that the world which birthed those dreams...

No longer exists

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