Hedge Fund Manager? A question

[newwurldmn]

Quote from GordonTheGekko:

FYI- in a nutshell, hedge funds far outperform any mutual fund arrangement, ad the reason why they're not accessible to anyone not a millionaire is because of Washington's goal of the elite maintaining power (their stated reason during the great depression was that 'rich people can fend for themselves.')

The goal is because a hedgefund can lose 100% (like LTCM). How many mutual funds lose that? And the government doesn't need to deal with thousands of middle class people losing their savings to some jerk off scumbag.

Whether it's properly implemented or not is another topic.

 

[FrankSlaughtery]

Quote from newwurldmn:

The goal is because a hedgefund can lose 100% (like LTCM). How many mutual funds lose that? And the government doesn't need to deal with thousands of middle class people losing their savings to some jerk off scumbag.

Whether it's properly implemented or not is another topic.

yeah the gov would rather you lose 65% in one year to a scumbag mutual fund manager who doubled down on fnm and fre

 

[dafeeder]

Quote from newwurldmn:

The goal is because a hedgefund can lose 100% (like LTCM). How many mutual funds lose that? And the government doesn't need to deal with thousands of middle class people losing their savings to some jerk off scumbag.

Whether it's properly implemented or not is another topic.

LTCM might have lost a bunch of money, but didn't the Fed bailout them out?

 

[Epic]

Quote from GordonTheGekko:

Also, to answer the guys question, as a rule of thumb most hf's of varying sizes from $300m to $50b make 20%-60+% per year.....

AFAIK, those numbers are high. For funds that size it is actually more around 10-20% over anything more than a year or two. If you have a verified source that shows large fund returns in the 20-60% range then please provide a reference. According to Barron's top 100, there were only 6 funds that got out of the 20's over three years.

 

[heech]

Quote from GordonTheGekko:

Also, to answer the guys question, as a rule of thumb most hf's of varying sizes from $300m to $50b make 20%-60+% per year. Of course nothing is guaranteed in this business, so when there is a drop down, things get dramatic between people! Hedge finds wont disclose their record without an NDA- which is bad because they cant advertise, but good if they're performing terribly and don't want to face the music just yet. (I want you to suspend disbelief and read cramer's first book confessions of a street addict - it was written for professionals and competent traders, and is actually a decent read about wall street and the 90s)

This is really not realistic.

There are various hedge fund databases widely available to the public, and "20-60% per year" is hardly a rule of thumb. Hedge fund databases typically, due to SEC regulations, are only available to those who self-certify as accredited investors (i.e., you click a button saying "Yes, I'm an accredited investor")... but you can look at HFR, BarclayHedge, hedgefund.net.

Even if you can't get into the database to look at individual funds, you can still look at hedge fund indices.

http://www.hedgefund.net/hfn_public/marketing_index_new.aspx?template=realtime.html

https://www.hedgefundresearch.com/mon_register/index.php?fuse=login_bd

 

[kcgoogler]

most of the hedge fund indexes (in the above two links) show negative for the year.

Am i reading it right? so most hedge funds (which are part of these indexes) are bleeding ytd?


-gariki

 

[newwurldmn]

Quote from FrankSlaughtery:

yeah the gov would rather you lose 65% in one year to a scumbag mutual fund manager who doubled down on fnm and fre

You could, but it's a lot less likely. Fairlhome is having a disaster of a year (after many good ones); but they will never go to zero.

And you rarely hear of mutual funds that have 20% drawdowns in a month (unless the overall markets are down like 15%). In hedgefunds it happens all the time.

Also, you never hear of fraud in mutual funds, but you often hear of fraud with hedge funds.

 

[heech]

Quote from kcgoogler:

most of the hedge fund indexes (in the above two links) show negative for the year.

Am i reading it right? so most hedge funds (which are part of these indexes) are bleeding ytd?


-gariki

In one word: yes. Great majority of funds are in the red.

 

[Martinghoul]

Quote from heech:
In one word: yes. Great majority of funds are in the red.

Yes, modestly... There's also a bit of skewedness due to Paulson.

 

[heech]

Quote from Martinghoul:

Yes, modestly... There's also a bit of skewedness due to Paulson.

Not sure why you say that. Most indices are not weighted by assets, so Paulson shouldn't have an outsized effect on results.