The Hayek Fund was born for two purposes. First, and most important by far, is to make a good return for its clients. The fund owes this duty to its investors, much as a corporation owes a duty to its shareholders (not its unions or employees). Second, I hope this is another way to educate people on who Friedrich Hayek was and why his ideas are so important. The media likes to think that we’re all Keynesians. Well, you know what, I’m not, and I don’t think you are either. If this recession has taught us anything it’s that there is no multiplier effect. The government has wasted our hard-earned money and put a lien on the hard-earned money of our kids (well, your kids, since I don’t have any) on an economic theory that didn’t work in the ‘30s or the ‘70s or today.
If this Congress and this President have done anything, they’ve showed the destructive consequences of this bankrupt theory. For investors, the score is 172 funds to one. It’s performance that matters, though, and I like our chances.
Steven Kiel is the president and chief investment officer for Arquitos Capital Management, a Virginia-based investment management firm.