00:00There's one big reason that you're able to talk about hedge funds at all.
00:03Fortune magazine, because the term did not exist before it graced the pages of fortune.
00:10Legendary fortune journalist Carol Loomis coined the term in 1966 while profiling the unique
00:18strategy of an investor who made his partners millions with, quote, speculative techniques
00:25for conservative ends. So a fund that hedges risk, in other words, by buying stocks you think will go
00:32up and shorting others you expect or pray will go down. Carol Loomis became the poet laureate of
00:41leveraged commodities. That's quite a title. While reporting on Alfred Winslow Jones's managing
00:47strategy, the headline of the piece was the Jones nobody keeps up with. But that quickly changed
00:54because that issue of fortune was the one that launched a thousand funds. Wall Street chased
01:00Jones's model and used the Loomis label in the process.
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