Sound Bites Those Who Heed Them

I have been in the investment business for 23 years as a broker, analyst, institutional portfolio manager, and now hedge fund manager. I now see more money whipped around on investment themes or concepts than ever before, and this phenomenon concerns me -- because more than ever, I hear investment "stories" that are factually untrue.

Maybe it's the hedge funds, daytrading off of stories and rumors. Everyone loves to hammer us guys. Aren't we the root of all financial evil?

Maybe it's the financial media, hyping insignificant bulletins into major headlines. What was the investment significance in Martha Stewart's release anyway? Yet CNBC devoted hours upon hours of coverage to the story.

Or maybe it's just that the magnitude and velocity of news flow has grown so much that investors need to boil it down to sound bites. ...