No Fun Allowed in Red Sox Nation

You would think all would be good in Boston with the Sox enjoying a 11-game lead on the Yankees heading in to the All-Star break. But you would be sadly mistaken.

Boston’s investment community used to make New York jealous.  Fidelity, MFS, Putnam and a host of other shops fostered a climate of investment excellence that was, pound for pound, better than anything New York could muster . Particularly on the growth stock side.  They controlled billions in assets, and more mind share, than New York, Chicago and all the other cow towns combined.

At least it seemed that way.

I used to be terrified of Boston’s legions of growth stock disciples who would trash a mid-cap stock in the blink of an eye...leaving my portfolio and performance in tatters. They were bigger, better, and quicker on the draw. It did not hurt that they got the first call too.

Ah, the power of commissions.

But Boston scares me no more. Somewhere something went terribly wrong. Poor decisions were made by the powers that be running the firms, but that can’t explain the all of the decline.

Perhaps the fight was sucked out of Boston’s investment community by people like William Galvin:

UBS Securities LLC, the investment banking unit of Swiss banking giant UBS AG, was accused by Massachusetts regulators of “dishonest and unethical” practices in dealings with hedge fund advisers.

Michael Torrisi, an executive director at the firm’s prime brokerage division, allegedly charged $12,000 on his corporate credit card for “Red Sox Suite Tickets” on March 12, 2006, which were later distributed to clients. Investment News

In the 1690’s they held witch hunts in Salem. It appears they have changed venues in 2007. Now the action is in Boston:

“Unbeknownst to the pension funds, university endowments, charitable foundations, institutional investors and individuals who invest in hedge funds, the rewards for the hedge fund advisers come with implicit and sometimes explicit quid pro quos,” said Mr. Galvin in a statement.

A career on Wall Street used to be relationship driven. Sure, the pay was good but the hours were horrible, stress overwhelming and sacrifices abundant. Going out on the town was part of doing business.

And apparently, in Massachusetts, it is borderline illegal.

I bet Mayor Bloomberg would love to have those folks working in NYC. Although getting a group discount on Bloomberg terminals is out of the question.

He is no dummy. Like some people you read about.

Galvin slams UBS for hedge perks
Investment News
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The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned

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