There is an interesting article in The Slate, "Look Who's Starting a Hedge Fund!" by Daniel Gross, about the hottest opportunities available for out of work politicians and bureaucrats. Among all professions, politicians and bureuacrats, are uniquely positioned to exploit the advantages of the "Network Effect". The private equity firms stand to benefit from the network externalities generated by such individuals, by way of their being known to a large base of potential customers. This creates a postive feedback loop attracting larger number, richer and more reputed customers to the firm.
Mr Gross makes a few predictions for the next year and ahead.
"As more big institutional investors such as pension funds allocate capital to hedge funds, we should expect more such career switches. By 2009, it wouldn't be surprising if investors were listening to sales pitches for CRAM (Condi Rice Asset Management), Dick Cheney's Buckshot Capital (sole holding: Halliburton), and the Stuff Happens Global Fund, an arbitrage operation run by Donald Rumsfeld."
There is one name Mr Daniel Gross missed out, and he is presently looking for a job -Paul Wolfowitz. How about this name "Wolfowitz-How to screw up your investment" Fund? By 2009 we will have another big noun looking for a verb, George W Bush! I will not be surprised if in return for the beneficence showered on them during the last 8 years, the Texan oil companies come up with a Fund to manage their already massive and ever growing surpluses, and nominate George W as its its Manager or Director!
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