Hedge funds

Quote from Ikspec:



So you're returning 5 million a year and charging 3 million a year for a net return of 2%? After inflation you have a real return of (2% - (Inflation Rate for that year)). The average inflation rate over the past 80+ years has been around 3.2%, I believe. The inflation rate is now somwhere in the 2% range if I recall correctly. Either way you'd have a negative real return now or if my inflation numbers are off you are returning somewhere around 0%.

Therefore, one who cannot envision this simple concept shouldn't consider themselves apt to run a hedge fund.
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You're right,5% is too low to shoot for.I would shoot for something higher,but taking more of a longer term approach,instead of daytrading.I would mix the portfolio up with some debt and equity private placements of public companies,high paying dividend stocks,call option writing,zero coupon treasuries,muni bonds,and some REITS.I think the right combination of those instruments would make up a great portfolio.And once you're managing a large fund,you have all the brokers bringing you the best investment banking deals,as well as getting access to better research calls than the average small time investor.
 
sounds like it's a disaster waiting to happen. Good luck anyways but don't give the industry a bad name or you'll hear about me (and others I'm sure).
 
i'm new to the forum and thought i'd share my experience. i just started my own HF after years of successful personal trading. i'm in my late 20s and have been in school most of my life. i had to rely upon family and friends for initial capital, and i can say that no one in industry will even follow your performance if you have less than a million under management. i agree with earlier comments that a target annual return of 15% over time would likely attract sufficient attention to allow the fund to grow itself. i can say that my initial experience confirms this comment. personally i find the experience very gratifying to see one's abilities applied to a "broader platform," if you will. if you're good and have sufficient capital backing, i say go for it....

AS
 
Quote from Babak:

Anyone going to the Street hedge fund conference?
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I would but that is my graduation week from college.

Next year when I have much better results, I will use it for marketing.
 
I would mix the portfolio up with some debt and equity private placements of public companies,high paying dividend stocks,call option writing,zero coupon treasuries,muni bonds,and some REITS.I think the right combination of those instruments would make up a great portfolio.And once you're managing a large fund,you have all the brokers bringing you the best investment banking deals,as well as getting access to better research calls than the average small time investor.
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The only comment I would have about this approach...is the big money wants to see focus. They want you to either fit neatly in one of their categories (long/short, mkt. neutral, stat arb, etc.) or if you are a "multi-strategy" fund...you would have to clearly outline each independent strategy that you are running in the fund.

This approach may be fine for courting high-net worth types, but it won't hold water with institutional investors....

Good luck!
 
does anyone have any experience of starting their own broker/dealer or know anything about it or anyone who has ever tried, or know anywhere to get info... possibly starting one w/ just funds and annuities, etc.. just seris 6 stuff no 7 trades....
tia for any input
 
Quote from Ron In-a-sauna:

does anyone have any experience of starting their own broker/dealer...
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How many threads are you going to post this in??
 
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