This week, AQR Capital Management co-founder Cliff Asness
fired off a letter - circulated widely by hedge funds -
responding to President Barack Obama's contention that some
Chrysler stakeholders, among them hedge funds, had been
unwilling to make "sacrifices" in order to allow a successful
restructuring of the troubled automaker.
"While many stakeholders made sacrifices and worked
constructively, I have to tell you, some did not," said Obama
in late April. "In particular," the President said, "a group of
investment firms and hedge funds decided to hold out for the
prospect of an unjustified taxpayer-funded bailout. They were
hoping that everybody else would make sacrifices and they would
have to make none. Some demanded twice the return that other
lenders were getting. I don't stand with them."
Asness' response, titled "Unafraid in Greenwich,
Connecticut," shot back that if investment managers had made
such so-called sacrifices, by accepting less than they...