How Come No Desks At Investment Banks?

[m22au]

buzzy,

What if you're a star trader, but because it's difficult to advertise a hedge fund, you don't get enough interested investors to make it worthwhile?

I guess what I'm getting at is ... apart from friends and family ... how do you successfully market your hedge fund to people who would rather invest in a brand-name mutual fund that has lost money over the past 3 years, rather than invest with p2 or any other successful trader, who is capable of 50% plus per year?

Quote from buzzy2:


Proprietary trading is not that extended these days because shareholders and management consider it "risky". There are a few though, but if you can make money, why share it with the bank? Go open a hedge fund.

check out my three posts here
http://www.elitetrader.com/vb/showthread.php?s=&threadid=10577&perpage=6&pagenumber=33

 

[Banjo]

12-17-02 01:57 PM
interesting
06:57 ET GS Goldman Sachs making riskier bets - WSJ (74.53)
The Wall Street Journal reports that GS has increasingly grown more dependent for its profits on aggressive traders betting with the firm's cash; proprietary trading in a wide range of investments now could account for 25% or more of GS's income before taxes, analysts estimate, and is a bigger proportion than the historical percentage at GS and a larger share than the 5-20% that is typical of proprietary trading at rival firms; some senior people worry that it may be time to exercise more caution.

 

[buzzy2]

Quote from m22au:

buzzy,
What if you're a star trader, but because it's difficult to advertise a hedge fund, you don't get enough interested investors to make it worthwhile?

If you're good, and you're patient, the smart money will find you. You're not after dumb money, that's why they call it "dumb".

 

[buzzy2]

Quote from Banjo:
12-17-02 01:57 PM
06:57 ET GS Goldman Sachs making riskier bets - WSJ (74.53)

Yeah I saw that too. But the GS proprietary group has 10/20 people I think, and they weren't hired by GS, they were employees of some little company goldman bought out.

So 10-20 of how many thousands working for GS? I don't think there are a lot of job openings there. And, the bonus is 10% profits, I don't know why these guys give away the other 10% to intra-company welfare, must be because a hedge fund is more work and more responsability, or, maybe because their "edge" is information accesible only from GS.