The you-gotta-love-hedge-funds argument, espoused by the likes of Sebastian Mallaby, rests heavily on the assumption that hedge funds spur important innovations that in turn make our economy better, stronger, faster. Here, from the FT, is striking evidence of such innovation:
At least one US hedge fund is refusing to take on new partners until they sign a postnup barring their spouses from making any claims on the fund, says Ken Burrows, a New York attorney who has written all the fund’s agreements. …
Another New York attorney, who has handled four postnups this year, says the people seeking them develop a “mindset” that makes them think “all my spouse is doing is spending my money. Let me staunch the flow now. Let me limit the goody bag and limit my future exposure.”
Kevin Tierney, presiding judge over matrimonial cases in the Connecticut judicial district that is home to many hedge funds, said postnups had become “rather common” in his court.
Of course, you could also cite this as evidence that money is the root of all evil, or at least that some hedge fund managers are the tackiest people in the whole wide world. But hey, it’s definitely an innovation.