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PDF Download Red Notice: A True Story of High Finance, Murder and One Man's Fight for Justice
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Red Notice: A True Story of High Finance, Murder and One Man's Fight for Justice
PDF Download Red Notice: A True Story of High Finance, Murder and One Man's Fight for Justice
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Audible Audiobook
Listening Length: 14 hours and 7 minutes
Program Type: Audiobook
Version: Unabridged
Publisher: Recorded Books
Audible.com Release Date: February 3, 2015
Whispersync for Voice: Ready
Language: English, English
ASIN: B00T567KIA
Amazon Best Sellers Rank:
This may not be a perfect book - among other things, Browder spends too much time talking about how he (the grandson of the head of the US Communist Party) ended up being a capitalist extraordinaire in post-Soviet Russia, his successes (and some failures) in business and romance, and so on - but it's more than fascinating. in fact, it's a riveting read that makes very clear what we all know: that Putin is a corrupt thug who will stop at nothing to get what he wants and that Russia is as repressive as it ever was.The first half of the book is the portion that I found a bit self-indulgent. However, his story is fascinating and his writing is appropriately conversational and enjoyably self-deprecating; even when he achieves great success, he doesn't come across as a know-it-all who thinks he's the smartest man in the world. As a result, it's not arduous to get to the second half, where he finds himself doing battle with Putin's Russia and all the corruption and violence therein. At that point, the book becomes an absolute juggernaut that I wasn't able to put down; it's as good as any mystery and all the more fascinating because it's true. And the book also serves to transition Browder from being a capitalist to being a human rights activist, at least of sorts, and it's a very interesting progression.It's still early in the year, but I'll be a bit surprised if this doesn't make it to my top 10 for 2015.
I've read a lot of Russian and Soviet history and I am interested in hedge funds, so I picked this book off the Amazon Vine list. What I did not expect was a book that was so hard to put down that it would keep me up late reading. Bill Browder has written a remarkable and compelling book.Red Notice is the story of Bill Browder's hedge fund, Hermitage Capital, which at one time was the largest foreign investor in Russia. Hermitage produced extremely high returns and, before its demise, Browder had four and a half billion dollars under management. Unlike hedge funds like Long Term Capital Management (Inventing Money), the fund didn't blowup (although it came close in 1998). Instead, it was destroyed by the corrupt Russian government. This the story of Heritage Capital's rise and fall. It is also the story of the murder of a Russian tax lawyer, Sergei Magnitsky who worked for Browder. Red Notice is also an account of Bill Browder's crusade for at least some measure of justice for Magnitsky.Boris Yeltsin and his advisers who inherited the Russian state wanted to make sure that communism would never return. To do this they wanted to create a capitalist state that would replace the centrally planned communist economy. Gorbachev had almost been overthrown in a coup by the communist old guard, so Yeltsin and his advisers felt that they had to put the state on an irreversible course away from communism as soon as possible. This meant privatizing the assets of the communist state (which was all of Russian) in a vast fire sale. Many assets and newly formed companies were sold for a fraction of their value. This was the environment that gave rise to the Oligarchs, brilliant and ruthless men who built multi-billion dollar fortunes from the rubble of the Soviet State.Bill Browder's grandmother was Russian and his grandfather was the head of the American Communist Party. He was fascinated by Eastern Europe and when few people saw the possibilities in Russia he established a hedge fund that became wildly successful buying up under priced Russian assets.The first half of the book is the story of how Browder built Hermitage Capital. Browder comes from a brilliant family. His father is a noted mathematician and his brother is a physicist. When he was young, Bill seemed to be something of an underachiever, at least compared to the rest of his family. Browder did manage to work his way into Stanford Business school and from there to a job at Salomon Brothers.One of the things that impressed me about Browder is his self-confidence and ability to take risks. Salomon Brothers reaction to the "out-of-the-ballpark" investments that Browder made for them was to form a "task force" to study the issue (and then take credit for Browder's work). Browder quite Salomon Brothers and founded Hermitage Capital. He managed to get the famous billionaire investor Edmond Safra to put up the initial money for the fund and went on to make huge profits.Browder seems to honestly recount his history, even when the admissions must have been painful. He did not foresee the Russian bond default in 1998 and Hermitage Capital lost 90% of its capital. He managed to build the fund back up in he next few years, recovering all of the losses and delivering record profits. The standard share for hedge funds is 20% of the profits, so Browder must also have become a very wealthy man (e.g., hundreds of millions of dollars).Post-Soviet Russia developed into a kleptocracy. People in the government and those with the necessary connections were stripping assets and stealing. Some of the assets, like the energy company Gazprom, were so huge that even a gang of dedicated thieves could only steal a fraction of the assets. Hermitage Capital invested in Gazprom and other companies. After buying the under-priced assets they exposed the corruption, which at least for a time drove the thieves away and caused stock prices to rise.Browder writes that exposing corruption worked well while Putin was gaining power, since it cleared away some of the oligarchs that were in his way. But once Putin came to power and became the kleptocrat-in-chief, Hermitage Capital's investment strategy was no longer tolerated.Browder was making vast amounts of money and lauded as a brilliant fund manager. He writes that he did not see the new reality of Putin unfold until it was too late. The second half of the book is about how Putin's gang tried to crush Hermitage Capital and everyone associated with it. Ultimately this resulted in the murder of Sergei Magnitsky.Before founding Hermitage Capital Browder worked for the London office of Salomon Brothers. He married a British woman and they had a son. Somewhere along the way, Browder became a British subject and renounced his US citizenship. Britian allows dual citizenship, so Browder could have become a British subject and remained a US citizen. But he chose not to do this.People who renounce their US citizenship generally do so for tax reasons. Whether this is true for Browder is not clear. The United Kingdom is hardly a low tax haven. There may have been other, more emotional reasons. What ever the case, there is some irony in Browder's renouncing his US citizenship, since it was the US that allowed him to gain some measure of retribution by passing the Sergei Magnitsky Act. Of course the fact that Browder is extremely wealthy helped him gain access that would have been denied to ordinary mortals.Through this remarkable tale the reader sees Browder grow through the adversity he experiences. At the end of the book he regrets that he was not wiser and did not see Russia clearly for what it was. Such regrets are common for anyone who examines their life. Browder has written a remarkable book about his painful journey to his wiser self.
Bill Browder tells a compelling story but manages to not come off as a sympathetic character. He was making money hand over fist on the backs of Russians and doesn't seem to see any inconsistency. He never mentions doing anything to give back to the Russian people. Chapter upon chapter goes on and on about him and comes across as narcissistic and gets in the way of the story. His play by play of getting the Magnitsky Act passed was more about Bill Browder than about getting justice for his auditor (he calls him his attorney). Bill Browder never made any efforts to learn Russian, to learn the culture or to have any understanding of the people who worked for him. If he had, he would have realized that a suggestion that Magnitsky just pick up and leave Russia was out of the question for him.Several sections come across as disingenuous. For example, he criticizes his first wife for planning an incredibly expensive vacation and then brags about an expensive vacation that he takes with his second wife. He fakes humility at the hearings for the Magnitsky Act, but brags about his meetings with Senators and the talks he is invited to give. He repeatedly talks about how his talks and speeches were the only ones that could make certain audiences cry. It seems far-fetched for him to call himself a human rights activist. He took up on one cause for his auditor, Magnitsky. What are his other great acts of human rights activism? I really don't see any. He states late in the book that he has no culpability in the death of Magnitsky. On the one hand, that is completely true. The Russian guards denied medical care and beat Magnitsky to death. However, it is Browder who thought he could reveal corruption in Russia while in Russia and remain untouched. His arrogance and disregard for culture and political realities made him a less than sympathetic person. His descriptions of people's body shapes and voice tones are also a distraction and unnecessary, much like his description of dating his second wife. It gave a window into his character. He talked about dating her the way someone describes a sporting event using words like win and conquer. He went out of his way to write about how beautiful she was and how other men wanted her but he won her, making her sound like a prize instead of a human. He attempts to sound like he cares for the Russian orphans that now cannot be adopted by US citizens, but it sounded more like a passing thought. If he is a human rights activist, what is he doing for the orphans, especially since the ceasing of adoptions was a direct retaliation for the Magnitsky Act.There are no doubts that Magnitsky was unjustly killed in a Russian prison by Russian officials. Unfortunately, the way Bill Browder wrote the book leaves the reader thinking about Bill Browder and not about the corrupt Russian government and its impact on our country.All of these qualities of Bill Browder and the style of his writing where he repeatedly portrays himself as a magnificent human rights activist were a complete turnoff.
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