Diane\'s Blog

Anonymous Money Manager

Ms. Ravitch:

I manage money and I’m black.   I am distressed by the barrage of mail I’ve been getting from fellow money managers who somehow think there is a fairly easy solution to educating the “underclass” by using charter schools.  I’d like to share with you a few points from my experience which may help you contextualize my concern.

  1. Hedge fund managers typically don’t add value to society.
  2. Hedge fund managers often have very little practical real world experience.   Many have not worked for anyone else. Yet activist managers are very comfortable giving advice to operating managers of companies in which they take a stake.
  3. Hedge fund managers virtually never hire minorities outside of Asians.
  4. Hedge fund managers have attended exclusive private schools and almost always send their kids to the same.
  5. Hedge fund managers know virtually nothing of incentive systems and largely supported the Wall Street incentives which nearly created the demise of our society as we know it.
  6. Hedge fund managers and private equity managers typically don’t pay their share of Federal taxes.   (I personally elect to pay my carried interest as regular income)

With my experiences as a backdrop,  I’m somewhat concerned that groups such as DFER (Democrats for education reform) are receiving so much positive press.

As I have begun to research education I wonder if you can point me in the right direction?

  1. Has there been a study on the effect of educational lotteries (like the kind that are run to select students for some charter schools) on the students who aren’t picked?   It seems a bit demoralizing to me.
  2. Has there been a study of teachers who would work for incentives?   In other words I’m not sure free market incentives work for professionals like all the teachers I know?

Background

I am a 22 year veteran of XXX who left to start a money management business.  One of my early management assignments at XXX was to manage public sector sales for the Philadelphia area.   This job afforded me a great deal of interaction with teachers and students of the Philly school district.

My current business manages money for clients with assets from $100K to several hundred million.   It is the intention of my family to pay out all business profits from our internal hedge fund to urban squash and music education in public schools.

Thanks in advance for your consideration.