Recent content by Epic

This is old news and the market has already responded. The vast majority of funds still aren't going to generally advertise. Turn on the TV or radio and every once in a while you'll hear an ad that says, "accredited investors only" at the end of it. But they are rare. Baron is mostly...

There have always been laws against posting performance on a public forum/website in the US. It is considered "general solicitation". We are talking about Rule 506 of Reg D, Investment Act 1933 and the Exchange Act 1934 also applies. These regulations are common knowledge in the industry...

There is no bragging in this industry. The numbers keep score. If they're good, they're good. My last piece of advice would be to start keeping a lower profile once you feel like you'd like to start managing OPM. At that point you won't be able to make comments about being "up about 34%...

When you state a max 10% DD are you referring to monthly or daily? FYI, while a required performance capsule only indicates peak-to-trough drawdowns on a monthly basis, these days almost every investor wants dailies. Just so you are aware. There are many highly volatile programs with quick...

What you're describing is not at all compliant with the regs. He'd better not invite too much exposure.

Ironically, most groups who do what you are talking about actually realize a dramatic reduction in performance as compared to their small prop days. The most typical reason is that once they have access to sophisticated analysis, they begin realizing a more accurate quantification of risk...

How do you know he doesn't have a track record? Did you request it in an email. By and large, managed accounts cannot post performance on public websites, but he claims to have it available for anyone who requests it. Anyway, without the performance and infrastructure, he might land a few...

I think your experience mainly applies to the highly saturated spaces. Sure, if you go out there selling a long/short equity fund, you are gonna have difficulties. Tons of competition in that space. Difficult to stand out. Regardless of performance and size, there must be a differentiating...

I don't really have to get into it with you Jack. It really has nothing to do with whether or not your trading was legal or profitable. It is obvious that your fundraising claims are very dislocated from reality. I'm sure it seems very realistic to everyone here that there are sophisticated...

Are you suggesting that a trader enter a contract with a capital allocator that includes a guarantee of income (aka guarantee of profit)? I'm sure the regulators and prosecutors would love to get their hands on that contract.

Who is looking to invest $1MM, $5MM, or $20MM and give full trading discretion to a "normal person"? That is the whole point. When it comes to hedge funds or discretionary managed accounts, investors are looking for the outliers. They want abnormal intelligence, commitment, and drive...

Yes, that does matter. Around here you'll see a ton of quotes about how "trading $1MM is the same as trading $100MM", or "$10K is no different than $1MM, it's just bigger trade size". That is absolutely untrue, and almost every capital allocator out there knows it. If your account is only...

Yeah, in the OPM management world, you'd never hold onto clients with high volatility. Even with 100% target returns, if you ever had a 50% drawdown, you'd lose almost every client. 20% will start looking elsewhere at 15% DD. The more aggressive ones will actually increase their allocation at...

You can start to get interest from individuals at about 12 months, but usually they'll need to know you first to have something to convince them. At two years you should be able bring on individuals relatively easily, but they'll be cautious. If you're good, you should be able to raise about...

I can't say one way or the other regarding your associate, but my rule is that anyone making fantastic claims should be absolutely willing to provide proof. There is not a single documented and verified case that I'm aware of where someone has achieved 100% annualized returns for anything close...