BetaZero Gilder Technology Fund

Discussion in 'Wall St. News' started by ByLoSellHi, Mar 28, 2007.


    Sign of a Market Top? George Gilder Launches New Hedge Fund

    Posted on Mar 28th, 2007 with stocks: SPY

    Birinyi's Ticker Sense submits:
    Last week's announcement that the Blackstone Group (BX) was filing to go public even though the company specializes in taking public companies private was taken as a signal by some that things are getting as good as they are going to get and therefore the market is peaking.

    Yesterday, we came across another indicator that some are surely to point to as evidence of a peak in the hedge fund world - George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund. For those who are not familiar with George Gilder, in the late nineties he gained a huge following picking tech stocks. At the height of the craze, mere mention of a stock by him would, in many cases, result in triple digit returns within hours. However, once the bubble burst, the stocks he touted fell almost as fast. The Boston Globe put it this way:

    By the mid-'90s, Gilder was confidently touting ''telecosm" (the convergence of communications systems and computers) as the next big thing -- and making a fortune giving speeches and investment tips. Telecom stocks soared whenever Gilder flashed them a thumbs-up, a market phenomenon that became known as the Gilder Effect. He was earning $100,000 a speech, and his company was being groomed for a $200 million public offering. Then the roof caved in, as hundreds of telecom companies went bust overnight.

    "Most subscribers came in at the top of the market," Gilder recalls of those dark days, when even his chief financial officer filed a lawsuit against him. ''So the modal experience of the Gilder Technology Newsletter subscriber was to lose virtually all of his money. That stigma has been very hard to overcome."

    It will certainly be interesting to see how much money Mr. Gilder raises.
  2. blast19


    Who is it that said never to invest in vehicles that might have a target price in their name? :p
  3. zdreg