Wednesday, April 25, 2012

What Was the Very First Hedge Fund? Ask Warren Buffett


The legendary economist and investor Benjamin Graham is widely known as the father of value investing. He may also be the father of the hedge-fund industry, reports Bloomberg.

While most historians and industry professionals credit Alfred Winslow Jones with launching the first hedge fund in 1949, some people, including Graham’s protege, Warren Buffett, disagree.
“Ben Graham managed a hedge fund in the mid-1920s,” Buffett wrote in a letter to the Museum of American Finance. “It involved a partnership structure, a percentage-of-profits compensation arrangement for Ben as a general partner, a number of limited partners and a variety of long and short positions….”

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