WEST PALM BEACH, FL (HEDGECO.NET) – Owner of the Dallas Mavericks, Mark Cuban is planning to start a new hedge fund according to AP business news. The new fund according to the report will be managedby professional gamblers. Cuban said a gambling hedge fund is not worse than a stock market; he thinks the stock market is like a �Ponzi Scheme� which according to him enables participants withinside knowledge to use such knowledge to their advantage.
Cuban had a windfall during the technology and dot-com era when he sold his internet venture capital firm for $5.7 billion. Upon this sale, Cuban purchased the Dallas Mavericks for about $580 million according to published reports. An NBC spokesman commenting on Cuban�s proposals said, the league has not had the opportunity to review such plan, Tim Frank said, “It’s just a blog entry, we just became aware of it this morning, and we haven’t had a chance to review it,” he pointed out.
Cuban said he did very well in the Stock Markets in the past 15 years during which he had been involved in trading. He said for many investors however, the stock market was similar to gambling. Cuban thinks his proposed Sporting Event based hedge fund is a good idea, saying that such venture will provide an opportunity for good and knowledgeable investors to profit from this business.
Cuban compared casino management to the role of the SEC, he noted however that casino management is a better manager and enforcer than the SEC. Casino management he said understands the rules, and so does the players.
He added that from “minimal reading and conversations” about sports betting, there are smart gamblers who win repeatedly, which he attributed to the vast information available about sports teams.
On casinos, Cuban said, “Unlike the stock market, you know the rules exactly. You know without question, the house is going to play by the rules. The gaming commission appears to actually enforce rules of play, unlike the SEC.” Experts of gambling regulations don�t believe Cubans ideas would work because federal and state laws have not looked kindly to gambling, according to such experts. Cuban was not immediately available for comments. Further details about Cuban�s proposals have not been provided.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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