Scott Fearon gets truthful of his hedge fund industry

Tony Miselli
   Scott Fearon is somebody who judges people by their appearances. The rock star hedge fund manager wrote a book about how to find hidden opportunities and basically gave a career of his from shorting companies and examining them fully before deciding to invest. His strategy of seeking out companies on the brink of failure and manipulating trades to serve his fund is told in a book called" Dead Companies Walking" and throughout the book Scott describes people and the first impression and dress he recalls from the first encounter. Scott describes six common mistakes these managers make in sinking their company and Fearon believes the failure of these people looking beyond the recent past and losing touch with its customers are two of the biggest mistakes. He cites examples but then ignores that even the most successful companies often break his six golden rules and yet have achieved tremendous success.  This is a hedge fund manager who sees profits from other companies and their race to the bottom in developing cost-saving structures that eventually hurt the economies by hurting the pockets of workers who can't purchase items. The author highlights Fran Lorenzo's decision to slash wages and pensions at Continental airlines and says failing to recognize seismic shifts in industry is a major mistake of company managers and the fine service airlines provide today is a direct result of actions of hedge fund managers such as this guy put on business and its leaders.This book is full of interesting highlights as Scott talking about a company called ChemTrack says, “There’s no way someone’s going to rush off to Walgreens, plunk down 20 bucks and then stab themselves in the finger just so they can feel guilty for overindulging.”  Fearon also says that wall Street is so crooked the larger the fund becomes with more assets the more likely it will not make any money for the investor as his fellow hedge fund managers keep the good funds for a select few family and friends of insiders. This is a interesting inside read to hedge fund investing and how closely these guys have their eyes on the operations of the companies that are am essential part of a countries economy