Hedge Fund Hell: Arbitrage in Financials Backfires

Quote from capitalMan:

I invest 90% of my net worth in my own hedge fund and have done so for the past 4 years but I am beating 99% of the hedge funds in 2008 with a 65% return, I hope this doesn't sound hubris, but it's just hard to find managers that are better...

i must say, that is very impressive. i'm guessing you either trade a short-term (high frequency?) or trend-following strategy?

i trade at a multi-billion dollar fund and we had our best year last year as well...but our 40% return pales in comparison to your monster 65%. hope you keep up the good work and show that there are some extremely talented funds still kicking.
 
Yeah, like I'm going to believe a hedge fund manager that tells me, or even tries to prove, that they've got x% of their money in the fund.

Whatever it takes to make the sale........
 
Quote from ventus:

i must say, that is very impressive. i'm guessing you either trade a short-term (high frequency?) or trend-following strategy?

i trade at a multi-billion dollar fund and we had our best year last year as well...but our 40% return pales in comparison to your monster 65%. hope you keep up the good work and show that there are some extremely talented funds still kicking.

A Billion+ USD fund returning 40% is more impressive.
 
Quote from ventus:

i must say, that is very impressive. i'm guessing you either trade a short-term (high frequency?) or trend-following strategy?

i trade at a multi-billion dollar fund and we had our best year last year as well...but our 40% return pales in comparison to your monster 65%. hope you keep up the good work and show that there are some extremely talented funds still kicking.

I suppose, the fund you are working for has no "lock up" period ? When are investors allowed to make redemptions ? Monthly ? Quarterly ?
 
Quote from stock777:

Correct. That's why they should be forced to reveal this in all offering papers.

WARNING: We will engage in practices designed to maximize our yearly fees and which very likely will result in you losing money when it inevitably hits the fan.

How’s this for a strategy....

Run a trading fund.
When quality stocks or the market as a whole begins to turn up from a downtrend, the fund insiders put their own money to work within the fund.
As the trend matures, the fund managers slowly pull their dosh out and replace it with dumb retailer money.

I’ve got a suspicion this goes on, near tops, high volumes and prices creeping along more slowly (churning).
Institutional insiders pulling their money out and replacing it with the dumb money they are meant to be guardians of.

I don’t have facts, just a thought…

Anything is possible.
 
Quote from TSGannGalt:

A Billion+ USD fund returning 40% is more impressive.

i agree. times like these are when having a diversified mix of strategies, portfolios, and traders really shine.
 
Quote from ASusilovic:

I suppose, the fund you are working for has no "lock up" period ? When are investors allowed to make redemptions ? Monthly ? Quarterly ?

to my understanding, and i may be wrong here, we have quarterly lock-up periods with a month in advance notice. despite our strong returns, we are still seeing redemptions from fofs who have capital locked up in other funds.
 
Quote from orange_trad:

Show me a manager who is 'officially' invested 50%+ in his own fund, and I show you an offshore bank account big enough for three managers to live retirement on...

You obviously don't know very many good ones because there are plenty that have that and more.
 
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