---
title: "Meaning & Key Takeaway of: Overwinding happens when hedge funds…"
description: "\"Overwinding happens when hedge funds destroy companies by attempting to leverage derivatives against otherwise productive long-term assets.\" — Douglas ..."
image: "https://sms4smile.com/quotes/i/c1a/douglas-rushkoff-2188_assets_overwinding-happens-when-hedge-funds-des_2151030.png"
---

#  Overwinding happens when hedge funds destroy companies by…

![“Overwinding happens when hedge funds destroy companies by attempting to leverage derivatives against otherwise productive long-term assets.” quote by Douglas Rushkoff](https://sms4smile.com/quotes/i/c1a/douglas-rushkoff-2188_assets_overwinding-happens-when-hedge-funds-des_2151030.png)   [Download](https://sms4smile.com/quotes/i/c1a/douglas-rushkoff-2188_assets_overwinding-happens-when-hedge-funds-des_2151030.png) [Open image](https://sms4smile.com/quotes/i/c1a/douglas-rushkoff-2188_assets_overwinding-happens-when-hedge-funds-des_2151030.png)

> “Overwinding happens when hedge funds destroy companies by attempting to leverage derivatives against otherwise productive long-term assets.”

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Hedge funds can ruin companies by over‑leveraging assets, harming long‑term productivity.

**In simple terms:** Over‑leveraging by hedge funds can destroy productive assets.

Key Takeaway

Beware of excessive leverage.

Themes

finance risk corporate governance

Mood

critical analytical

Type

financial inspirational

When to use this quote

- investment
- corporate restructuring
- risk assessment

Key Concepts

economics speculation asset management

Questions to Reflect On

- How does leverage affect company health?
- What safeguards can prevent asset destruction?

A Different Perspective

Leverage can also fund growth; not all hedge activity is harmful.

★ ★ ★ ★ ★   No ratings yet

[Assets](https://sms4smile.com/quotes/about/assets/) [Attempting](https://sms4smile.com/quotes/about/attempting/) [Company](https://sms4smile.com/quotes/about/company/) [Customer](https://sms4smile.com/quotes/about/customer/) [Derivatives](https://sms4smile.com/quotes/about/derivatives/) [Derivatives Productive](https://sms4smile.com/quotes/about/derivatives-productive-4522899/) [Fund](https://sms4smile.com/quotes/about/fund/) [Funds Destroy](https://sms4smile.com/quotes/about/funds-destroy-4522897/) [Happens](https://sms4smile.com/quotes/about/happens/) [Hedge fund](https://sms4smile.com/quotes/about/hedge-fund/) [Hedge Funds](https://sms4smile.com/quotes/about/hedge-funds/) [Leverage Derivatives](https://sms4smile.com/quotes/about/leverage-derivatives-4522898/) [Long](https://sms4smile.com/quotes/about/long/) [Long term](https://sms4smile.com/quotes/about/long-term/) [Overwinding Happens](https://sms4smile.com/quotes/about/overwinding-happens-4522896/) [Productive](https://sms4smile.com/quotes/about/productive/) [Term](https://sms4smile.com/quotes/about/term/)

## Related quotes

> [I've heard that one-half of the students at elite schools want to go into private equity or hedge funds. They want to keep up…](https://sms4smile.com/quotes/charlie-munger/i-ve-heard-that-one-half-of-the-students-at-elite-schools-want-to-go/)

[Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/)

> [These masters of the universe must be tamed in the interests of the ordinary families whose jobs and livelihoods are being put at risk...…](https://sms4smile.com/quotes/vince-cable/these-masters-of-the-universe-must-be-tamed-in-the-interests-of-the/)

[Vince Cable](https://sms4smile.com/quotes/author/vince-cable/)

> [There was a time traditionally - say, GM in the 1950s - it was trying to develop a consumer base that would be loyal…](https://sms4smile.com/quotes/noam-chomsky/there-was-a-time-traditionally-say-gm-in-the-1950s-it-was-trying-to/)

[Noam Chomsky](https://sms4smile.com/quotes/author/noam-chomsky/)

> [Hedge funds are investment pools that are relatively unconstrained in what they do. They are relatively unregulated (for now), charge very high fees, will…](https://sms4smile.com/quotes/cliff-asness/hedge-funds-are-investment-pools-that-are-relatively-unconstrained-in/)

[Cliff Asness](https://sms4smile.com/quotes/author/cliff-asness/)

> [Substantially fewer films will be produced over the next year or two. And a significant portion of the production costs of the reduced slate…](https://sms4smile.com/quotes/peter-bart/substantially-fewer-films-will-be-produced-over-the-next-year-or-two/)

[Peter Bart](https://sms4smile.com/quotes/author/peter-bart/)

> [Hedge funds are a very efficient way of managing money. But there are clearly some risks. Hedge funds use credit and credit is a…](https://sms4smile.com/quotes/george-soros/hedge-funds-are-a-very-efficient-way-of-managing-money-but-there-are/)

[George Soros](https://sms4smile.com/quotes/author/george-soros/)

> [I can't figure out why anyone invests in active management, so asking me about hedge funds is just an extreme version of the same…](https://sms4smile.com/quotes/eugene-fama/i-can-t-figure-out-why-anyone-invests-in-active-management-so-asking/)

[Eugene Fama](https://sms4smile.com/quotes/author/eugene-fama/)

> [You have hedge funds and people like that buying these assets to yield 15 or 20 percent, I mean, that's the buyer for these…](https://sms4smile.com/quotes/warren-buffett/you-have-hedge-funds-and-people-like-that-buying-these-assets-to/)

[Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/)

> [LTCM lost money when Russia defaulted on a certain class of bonds, and then they had other investments like on the spread between two…](https://sms4smile.com/quotes/richard-thaler/ltcm-lost-money-when-russia-defaulted-on-a-certain-class-of-bonds-and/)

[Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/)

> [Successful hedge funds will be entrepreneurial; it is the essence of the craft.](https://sms4smile.com/quotes/paul-singer/successful-hedge-funds-will-be-entrepreneurial-it-is-the-essence-of/)

[Paul Singer](https://sms4smile.com/quotes/author/paul-singer/)

> [Look at those hedge funds - you think they can wait? They don't know how to wait! I have sat for years at a…](https://sms4smile.com/quotes/charlie-munger/look-at-those-hedge-funds-you-think-they-can-wait-they-don-t-know-how/)

[Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/)

> [If competition for Kaggle's top talent becomes fierce enough among banks, insurance companies, hedge funds - we hope the world's best data scientists will…](https://sms4smile.com/quotes/anthony-goldbloom/if-competition-for-kaggle-s-top-talent-becomes-fierce-enough-among/)

[Anthony Goldbloom](https://sms4smile.com/quotes/author/anthony-goldbloom/)

> [You can't have bank holding companies acting as hedge funds. You can't have them taking a million-dollar pension plan for Joe Schmo the bus…](https://sms4smile.com/quotes/shia-labeouf/you-can-t-have-bank-holding-companies-acting-as-hedge-funds-you-can-t/)

[Shia LaBeouf](https://sms4smile.com/quotes/author/shia-labeouf/)

> [You've seen my statements; I do very well. I don't mind paying some taxes. The middle class is getting clobbered in this country. You…](https://sms4smile.com/quotes/donald-trump/you-ve-seen-my-statements-i-do-very-well-i-don-t-mind-paying-some/)

[Donald Trump](https://sms4smile.com/quotes/author/donald-trump/)

> [The risks facing hedge funds are non-linear and more complex than those facing traditional asset classessuch risks are currently not widely appreciated or well-understood](https://sms4smile.com/quotes/andrew-lo/the-risks-facing-hedge-funds-are-non-linear-and-more-complex-than/)

[Andrew Lo](https://sms4smile.com/quotes/author/andrew-lo/)

## More by Douglas Rushkoff

> [The first step toward maintaining autonomy in any programmed environment is to be aware that there's programming going on. It's as simple as understanding…](https://sms4smile.com/quotes/douglas-rushkoff/the-first-step-toward-maintaining-autonomy-in-any-programmed/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [Digital media are biased toward replication and storage. Our digital photos practically upload and post themselves on Facebook, and our most deleted e-mails tend…](https://sms4smile.com/quotes/douglas-rushkoff/digital-media-are-biased-toward-replication-and-storage-our-digital/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [“And spend they did. Money circulated faster and spread wider through its communities of use than at any other time in economic history.8 Workers…](https://sms4smile.com/quotes/douglas-rushkoff/and-spend-they-did-money-circulated-faster-and-spread-wider-through/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [Occupy Wall Street is meant more as a way of life that spreads through contagion, creates as many questions as it answers, aims to…](https://sms4smile.com/quotes/douglas-rushkoff/occupy-wall-street-is-meant-more-as-a-way-of-life-that-spreads/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [Time has always been used against us on a certain level. The invention of the clock made us accountable to the employer, gave us…](https://sms4smile.com/quotes/douglas-rushkoff/time-has-always-been-used-against-us-on-a-certain-level-the-invention/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [What makes a great standalone piece of hardware is not the same thing as what makes a great networking device. One can work as…](https://sms4smile.com/quotes/douglas-rushkoff/what-makes-a-great-standalone-piece-of-hardware-is-not-the-same-thing/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [Digiphrenia - how technology lets us be in more than one place - and self - at the same time. Drone pilots suffer more…](https://sms4smile.com/quotes/douglas-rushkoff/digiphrenia-how-technology-lets-us-be-in-more-than-one-place-and-self/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [A currency designed for long-term storage and investment doesn't do so well at encouraging transactions and exchange in the moment.](https://sms4smile.com/quotes/douglas-rushkoff/a-currency-designed-for-long-term-storage-and-investment-doesn-t-do/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [Since the 1960s, mainstream media has searched out and co-opted the most authentic things it could find in youth culture, whether that was psychedelic…](https://sms4smile.com/quotes/douglas-rushkoff/since-the-1960s-mainstream-media-has-searched-out-and-co-opted-the/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [Children are being adultified because our economy is depending on them to make purchasing decisions. So they're essentially the victims of a marketing and…](https://sms4smile.com/quotes/douglas-rushkoff/children-are-being-adultified-because-our-economy-is-depending-on/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [In spite of my own reservations about Bing's ability to convert Google users, I have to admit that the search engine does offer a…](https://sms4smile.com/quotes/douglas-rushkoff/in-spite-of-my-own-reservations-about-bing-s-ability-to-convert/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [“Limbic consonance is the little-known process through which the mood of a room changes when a happy or nervous person walks in.”](https://sms4smile.com/quotes/douglas-rushkoff/limbic-consonance-is-the-little-known-process-through-which-the-mood/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [Think 'Game of Thrones.' In the old days, this sort of show might be considered bad writing. It doesn't really seem to be moving…](https://sms4smile.com/quotes/douglas-rushkoff/think-game-of-thrones-in-the-old-days-this-sort-of-show-might-be/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [We have the alternative. "Do I want to be on the subway looking at these people, or do I want to be in my…](https://sms4smile.com/quotes/douglas-rushkoff/we-have-the-alternative-do-i-want-to-be-on-the-subway-looking-at/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

> [Digiphrenia”—the way our media and technologies encourage us to be in more than one place at the same time.](https://sms4smile.com/quotes/douglas-rushkoff/digiphrenia-the-way-our-media-and-technologies-encourage-us-to-be-in/)

[Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/)

[Explore all 180 Douglas Rushkoff quotes ](https://sms4smile.com/quotes/author/douglas-rushkoff/)

## More Assets quotes

> [A great smile is a wonderful asset, but a good heart is pure gold.](https://sms4smile.com/quotes/dolly-parton/a-great-smile-is-a-wonderful-asset-but-a-good-heart-is-pure-gold/)

[Dolly Parton](https://sms4smile.com/quotes/author/dolly-parton/)

> [Most people put money in their piggy bank. I buy a goose that lays golden eggs over and over again. That's what an asset…](https://sms4smile.com/quotes/robert-kiyosaki/most-people-put-money-in-their-piggy-bank-i-buy-a-goose-that-lays/)

[Robert Kiyosaki](https://sms4smile.com/quotes/author/robert-kiyosaki/)

> [Groupon has some interesting assets.](https://sms4smile.com/quotes/matt-cohler/groupon-has-some-interesting-assets/)

[Matt Cohler](https://sms4smile.com/quotes/author/matt-cohler/)

> [Developing expertise or assets that are not easily copied is essential; otherwise you're just a middleman.](https://sms4smile.com/quotes/seth-godin/developing-expertise-or-assets-that-are-not-easily-copied-is/)

[Seth Godin](https://sms4smile.com/quotes/author/seth-godin/)

> [Well I think they broke the mould when they made me and being humble is one of my great assets.](https://sms4smile.com/quotes/larry-hagman/well-i-think-they-broke-the-mould-when-they-made-me-and-being-humble/)

[Larry Hagman](https://sms4smile.com/quotes/author/larry-hagman/)

> [3 people get stranded on a remote Island A Banker, a Daily Mail reader &amp; an Asylum seeker All they have to eat is…](https://sms4smile.com/quotes/christopher-brookmyre/3-people-get-stranded-on-a-remote-island-a-banker-a-daily-mail-reader/)

[Christopher Brookmyre](https://sms4smile.com/quotes/author/christopher-brookmyre/)

> [Why doesn't the United States take over the monarchy and unite with England? England does have important assets. Naturally the longer you wait, the…](https://sms4smile.com/quotes/w-h-auden/why-doesn-t-the-united-states-take-over-the-monarchy-and-unite-with/)

[W. H. Auden](https://sms4smile.com/quotes/author/w-h-auden/)

> [You have great assets if you're a dual-threat, but you still have to throw from the pocket and do all those types of things.](https://sms4smile.com/quotes/marcus-mariota/you-have-great-assets-if-you-re-a-dual-threat-but-you-still-have-to/)

[Marcus Mariota](https://sms4smile.com/quotes/author/marcus-mariota/)

> [Regulations for international accounting and funding will have to be examined to identify policies that inadvertently discourage institutional investors from putting their resources into…](https://sms4smile.com/quotes/jose-angel-gurria/regulations-for-international-accounting-and-funding-will-have-to-be/)

[Jose Angel Gurria](https://sms4smile.com/quotes/author/jose-angel-gurria/)

> [I think Kwame will be an asset to the Lakers.](https://sms4smile.com/quotes/kareem-abdul-jabbar/i-think-kwame-will-be-an-asset-to-the-lakers/)

[Kareem Abdul-Jabbar](https://sms4smile.com/quotes/author/kareem-abdul-jabbar/)

> [ \[When I die\], I will decidedly not be regretting missed opportunities for a good time. My regrets will be more along the lines of… ](https://sms4smile.com/quotes/anthony-bourdain/when-i-die-i-will-decidedly-not-be-regretting-missed-opportunities/)

[Anthony Bourdain](https://sms4smile.com/quotes/author/anthony-bourdain/)

> [Sourav's greatest asset is his ability to communicate. He is a naturally very confident person. He encourages his team, is a great motivator and…](https://sms4smile.com/quotes/ravi-shastri/sourav-s-greatest-asset-is-his-ability-to-communicate-he-is-a/)

[Ravi Shastri](https://sms4smile.com/quotes/author/ravi-shastri/)

> [When you consider the sheer magnitude of investable equities to choose from in the world's emerging markets, you realize that finding one that looks…](https://sms4smile.com/quotes/mark-mobius/when-you-consider-the-sheer-magnitude-of-investable-equities-to/)

[Mark Mobius](https://sms4smile.com/quotes/author/mark-mobius/)

> [I was impressed for the ten thousandth time by the fact that literature illuminates life only for those to whom books are a necessity.…](https://sms4smile.com/quotes/anthony-powell/i-was-impressed-for-the-ten-thousandth-time-by-the-fact-that/)

[Anthony Powell](https://sms4smile.com/quotes/author/anthony-powell/)

> [If God was the owner, I was the manager. I needed to adopt a steward's mentality toward the assets He had entrusted - not…](https://sms4smile.com/quotes/randy-alcorn/if-god-was-the-owner-i-was-the-manager-i-needed-to-adopt-a-steward-s/)

[Randy Alcorn](https://sms4smile.com/quotes/author/randy-alcorn/)

[Browse all 957 Assets quotes ](https://sms4smile.com/quotes/about/assets/)

```json
{
    "@context": "https://schema.org",
    "@graph": [
        {
            "@type": "Quotation",
            "text": "Overwinding happens when hedge funds destroy companies by attempting to leverage derivatives against otherwise productive long-term assets.",
            "creator": {
                "@type": "Person",
                "name": "Douglas Rushkoff"
            },
            "isPartOf": {
                "@id": "https://sms4smile.com/quotes/#website"
            },
            "url": "https://sms4smile.com/quotes/douglas-rushkoff/overwinding-happens-when-hedge-funds-destroy-companies-by-attempting/",
            "about": {
                "@type": "Thing",
                "name": "Assets"
            },
            "@id": "https://sms4smile.com/quotes/douglas-rushkoff/overwinding-happens-when-hedge-funds-destroy-companies-by-attempting/#quotation",
            "image": {
                "@type": "ImageObject",
                "@id": "https://sms4smile.com/quotes/i/c1a/douglas-rushkoff-2188_assets_overwinding-happens-when-hedge-funds-des_2151030.png",
                "contentUrl": "https://sms4smile.com/quotes/i/c1a/douglas-rushkoff-2188_assets_overwinding-happens-when-hedge-funds-des_2151030.png",
                "url": "https://sms4smile.com/quotes/i/c1a/douglas-rushkoff-2188_assets_overwinding-happens-when-hedge-funds-des_2151030.png",
                "width": 1080,
                "height": 1080,
                "caption": "“Overwinding happens when hedge funds destroy companies by attempting to leverage derivatives against…” — Douglas Rushkoff",
                "creditText": "SMS4Smile Quotes",
                "creator": {
                    "@id": "https://sms4smile.com/quotes/#organization"
                }
            }
        },
        {
            "@type": "BreadcrumbList",
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "name": "Home",
                    "item": "https://sms4smile.com/"
                },
                {
                    "@type": "ListItem",
                    "position": 2,
                    "name": "Quotes",
                    "item": "https://sms4smile.com/quotes/"
                },
                {
                    "@type": "ListItem",
                    "position": 3,
                    "name": "Douglas Rushkoff",
                    "item": "https://sms4smile.com/quotes/author/douglas-rushkoff/"
                },
                {
                    "@type": "ListItem",
                    "position": 4,
                    "name": "Overwinding happens when hedge funds destroy...",
                    "item": "https://sms4smile.com/quotes/douglas-rushkoff/overwinding-happens-when-hedge-funds-destroy-companies-by-attempting/"
                }
            ],
            "@id": "https://sms4smile.com/quotes/douglas-rushkoff/overwinding-happens-when-hedge-funds-destroy-companies-by-attempting/#breadcrumb"
        },
        {
            "@type": "WebSite",
            "@id": "https://sms4smile.com/quotes/#website",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "publisher": {
                "@id": "https://sms4smile.com/quotes/#organization"
            }
        },
        {
            "@type": "Organization",
            "@id": "https://sms4smile.com/quotes/#organization",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "logo": {
                "@type": "ImageObject",
                "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png",
                "width": 512,
                "height": 512
            }
        }
    ]
}
```
