Unstructured Finance

What the? Money managers and the fog of bitcoin

“I still don’t even know what it is” – Jim Chanos, famed short-seller and founder of $6 billion Kynikos Associates.

“You know,  I don’t understand bitcoin” – Bonnie Baha, head of Global Developed Credit at $53 billion DoubleLine Capital.

“I don’t really know enough to have a view” – Chris Delong, chief investment officer of $8.1 billion multi-strategy hedge fund Taconic Capital Advisors

“I don’t have any insight at all. I don’t know how it should be valued. I have no anchor as to what it’s worth”-  Steven Einhorn, Vice-Chairman of Omega Advisors

“I like sound currencies. I have no interest in that. I would stay away”  - Margie Patel, senior portfolio manager at Wells Capital Management.

Breaking bad, the Bitcoin addition

It wasn’t too long ago that Ross William Ulbricht was writing his master’s thesis for a degree in chemical engineering. Now the 29-year-old San Franciscan is looking at spending many years in jail after being arrested by federal authorities on a variety of drug trafficking charges.

The purported founder of Silk Road, the notorious drug trafficking website, was arrested Tuesday by the FBI and appeared in a San Francisco federal court on Wednesday.  A bail hearing was set for Friday. Silk Road, an online marketplace where more than 900,000 registered users bought and sold everything from cocaine to heroin to molly (aka the new ecstasy craze) was shut down after roughly three years in operation.

Reuters reporter Emily Flitter spoke to Ulbricht’s parents in Austin, Texas, and the couple not suprisingly seemed shocked by the allegations against their son. Said Ulbricht’s mother, Lyn Lacava: “I know he never meant to hurt anyone.”

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