An IT consultant and hedge fund executive who made $250 billion in his hedge funds after the financial crisis was one of the few investors to survive the collapse of the markets in the fall of 2008, according to a biography he wrote.
Brad Feldstein, the founder of IT Management, wrote a book titled « Diverging Circles » and said he did not anticipate his investment portfolio would be a « bust » in the future.
Feldstein said he had not received compensation for the work he did, and he did it as a hobby.
« I didn’t think I was doing anything wrong, but I wasn’t going to get compensated for it, » Feldstein told Reuters.
« My main goal was to make money.
If I had been paid a lot more, I would have done the same thing.
If they were going to pay me more than they did, I wouldn’t be doing this. »
He made $4.5 billion on his $10 billion investment in 2007.
He made another $1.4 billion a year in 2012, according the biography.
His company, Feldstein Group, did not respond to Reuters questions.
Feldsfeld said he thought his investments were good.
He said the market had been shaken by the recession.
« When we were making our investments, we thought the markets were going up and down, but it didn’t happen that way, » Feldsstein said.
« I did get the same kind of price swings as other investors.
It’s not like a bear market.
It wasn’t like the Dow Jones had been going down.
The markets weren’t as volatile. »
He also said he believed his investments helped investors, but they were not « busting in the same way. »
« They were all very different types of investments, » Feldstifstein said, adding that he has invested in hedge funds.
« But if you have an investment portfolio, you need to understand what’s going on in the market. »
Feldstein said his company did not profit from any of his investments, but he was not a passive investor.
« There’s a lot of people out there who are making money and making money, but there’s no sense in it, » he said.
The author of « Diversifying Circles, » Feldsteins book, said the hedge fund was « in a bubble. »
« It’s a bubble, and if you don’t get out of it, you’re in for a really tough time, » Feldston said.
« The hedge fund has been successful, but we were the only one that made money, » Feldstone said.
Feldsteins investment portfolio included a « highly liquid » portfolio of real estate, according his biography.
He was the co-owner of a New York City-based real estate brokerage, and Feldstein’s real estate investments were worth about $10 million in 2014, according a report by the Securities and Exchange Commission.
He told Reuters he thought he made money in the hedge funds because the markets had been « underperforming. »
He said his investments also benefited the real estate community.
« We were able to get into the market by helping people, » Feldmann said.
He is the author of the biography, « Dive Into the Hedge Fund, » which was published in February by Oxford University Press.
Feildstein said in the biography that he believed the market was overvalued.
« If you have the ability to get out into the markets, you should do it, » Feildstein told reporters.
« It’s better than buying stocks. »
A spokesman for the Securities, Exchange and Commodities Futures Trading Commission declined to comment.