How do Hedge Funds get around the 90% Failure Rate?
- Thread starter Nagarjuna
- Start date
I understand where you are coming from.
More than all the licensing... There's plenty of offshore funds I know that will allow you to trade remote (anywhere in the world) and take care of all the licencing for you. They will take care of all all the regulatory and operational stuff for you. All you need to do is trade.
Though, you will be expected to provide a God-like performance. I'm sure your trading skills are beyond human imagination.
I am serious about offshore funds that will take you in remote. It's a matter of whether you are worth it...
jtnet
if a trader is good, he will trade for himself, no need to make peanuts. unless youre getting multi million bonuses.
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Support this point of view .
OPM result is worster as own capital result .
Minervini with privat account perforemd some 245 time's for 5 years. (one year was some more as 400 %)
Trading with OPM ,if performed fair , is depedence from
multiple's individuals',which credited operator with money
and will closely monitor risk . It is source of multiple conflict's
if a trader is good, he will trade for himself, no need to make peanuts. unless youre getting multi million bonuses.
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Support this point of view .
OPM result is worster as own capital result .
Minervini with privat account perforemd some 245 time's for 5 years. (one year was some more as 400 %)
Trading with OPM ,if performed fair , is depedence from
multiple's individuals',which credited operator with money
and will closely monitor risk . It is source of multiple conflict's
My goal is to be managing $1 billion one day, working from home, 1 man shop
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As you see from article belov ,source of 325 mln $ 1 year payement is only propaganda.
To sell he's personality ,name of the company to multiple
persons ,which would perform better without this service
(simple buy goverment bond)
http://www.nytimes.com/2007/05/23/business/23leonhardt.html?pagewanted=1&_r=1
All that capital, of course, also translates into ever-greater management fees, regardless of a fundâs performance. The flagship hedge fund at Goldman Sachs lost 6 percent last year, but it still brought in a nice stream of fees. Bridgewater Associates, which is based in Greenwich, has earned a net return of less than 4 percent in each of the last two years. Yet its founder, Raymond T. Dalio, made $350 million in 2006.
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Outside of the highfliers on the Alpha list, itâs already the norm. Since 2000, the average hedge fund hasnât done any better, after fees, than the market as a whole, according to research by David A. Hsieh, a finance professor at Duke.
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As you see from article belov ,source of 325 mln $ 1 year payement is only propaganda.
To sell he's personality ,name of the company to multiple
persons ,which would perform better without this service
(simple buy goverment bond)
http://www.nytimes.com/2007/05/23/business/23leonhardt.html?pagewanted=1&_r=1
All that capital, of course, also translates into ever-greater management fees, regardless of a fundâs performance. The flagship hedge fund at Goldman Sachs lost 6 percent last year, but it still brought in a nice stream of fees. Bridgewater Associates, which is based in Greenwich, has earned a net return of less than 4 percent in each of the last two years. Yet its founder, Raymond T. Dalio, made $350 million in 2006.
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Outside of the highfliers on the Alpha list, itâs already the norm. Since 2000, the average hedge fund hasnât done any better, after fees, than the market as a whole, according to research by David A. Hsieh, a finance professor at Duke.
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That is amazing how someone can earn $350 million returning only 4% per year. I can easily beat 4%. I better start raising money myself.
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Dear Sir
Author belivied to you ,that you can make 4 % per year .
Problem is ,that with high chance you can not sell your personality to broad public . Not with 4% per year ,not with 50%
Harry Potter is not another as lesbians fantasy , but
author of Harry Potter found broadly mass ,to which she
can sell that and have made more as 1 bil $ without any
start investment .
Rasputin can not true speak and write ,but he selled
he's personality to Russian Tzar family
Author of mormon religion performed the same
Miscrosoft product was not original ,have had and have multiple
error's in ideja and in realization ,But B.Gates (WASP) is very good sales person.
Google is not original ,not the best, but S.Brin(Jews) can sell
he's personality and product .
A Jollie in she's life before multiple cosmetic operation's
is not beaty ,she was very very average .
But she have made plastic surgery and found broad public ,to
which she can sell she's personality
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Dear Sir
Author belivied to you ,that you can make 4 % per year .
Problem is ,that with high chance you can not sell your personality to broad public . Not with 4% per year ,not with 50%
Harry Potter is not another as lesbians fantasy , but
author of Harry Potter found broadly mass ,to which she
can sell that and have made more as 1 bil $ without any
start investment .
Rasputin can not true speak and write ,but he selled
he's personality to Russian Tzar family
Author of mormon religion performed the same
Miscrosoft product was not original ,have had and have multiple
error's in ideja and in realization ,But B.Gates (WASP) is very good sales person.
Google is not original ,not the best, but S.Brin(Jews) can sell
he's personality and product .
A Jollie in she's life before multiple cosmetic operation's
is not beaty ,she was very very average .
But she have made plastic surgery and found broad public ,to
which she can sell she's personality
imo...
A better way to put it...
Is that 90% of hedge funds have zero chance of outperforming the market...
Except by sheer luck.
And here is the point you are all missing.
** This is by design. **
Most operators UNDERSTAND that they are structuring a "skimming operation"...
Whereby they form a family of 5-10 "hedge funds"...
Get 2% or more on all assets annually...
And get 20% of the profits from the 50% of funds that outperform by sheer luck.
Kill off the losing funds...
Promote the hell out of the winners...
Keep starting new funds.
I cannot believe that ** adults **...
Actually believe...
Anything that unregulated, offshore hedge funds spoon feed them...
Considering how corrupt the NYSE and AMEX are.
SSS
Despite your language being almost as impenetrable as the venerable Mr Hershey you make some good points.
Getting money under management is all about salesmanship and/ or having a good distribution network. An average and unexciting performance by no means precludes success in this respect.
Look at the dowdy results of so many funds run by so many banks be they hedge funds or long only equity.
A UBS, a Deutsche Bank has armies of grey men in a myriad of branches pushing their often dismal products.
I have first hand knowledge of a relatively new hedge fund of funds outfit with a most unexciting track record but with dynamic and motivated managers with a love of networking raising very considerable sums of money.
Of course oustanding performance is a great bonus. But it is certainly not necessary to success in asset gathering.
I believe pushing a highly volatile trend following strategy would be much more difficult but a low vol and "safe" fund of funds with a dull track record - no problem for the "glib" and energetic salesmen of this world.
Despite your language being almost as impenetrable as the venerable Mr Hershey you make some good points.
Getting money under management is all about salesmanship and/ or having a good distribution network. An average and unexciting performance by no means precludes success in this respect.
Look at the dowdy results of so many funds run by so many banks be they hedge funds or long only equity.
A UBS, a Deutsche Bank has armies of grey men in a myriad of branches pushing their often dismal products.
I have first hand knowledge of a relatively new hedge fund of funds outfit with a most unexciting track record but with dynamic and motivated managers with a love of networking raising very considerable sums of money.
Of course oustanding performance is a great bonus. But it is certainly not necessary to success in asset gathering.
I believe pushing a highly volatile trend following strategy would be much more difficult but a low vol and "safe" fund of funds with a dull track record - no problem for the "glib" and energetic salesmen of this world.
I just wonder..why are so many of them closed to new investors???? Wouldn't it be smart if they just accept more and more money and thus make more on the 2%?????? 
Oh it's so easy to get a track record, raise $100 million and then just cash in on the 2% with zero performance. Of course, none of your investors would ever ask for a redemption if you continue to underperform the markets!!!! They will just leave their money with you so you can continue to rip them off!! All these hedge fund investors are so naive!!!!!!!!!
Why doesn't everybody here run a hedge fund??? Any monkey could do it!!! It's like printing money, risk free!!!
Oh it's so easy to get a track record, raise $100 million and then just cash in on the 2% with zero performance. Of course, none of your investors would ever ask for a redemption if you continue to underperform the markets!!!! They will just leave their money with you so you can continue to rip them off!! All these hedge fund investors are so naive!!!!!!!!!
Why doesn't everybody here run a hedge fund??? Any monkey could do it!!! It's like printing money, risk free!!!
Why doesn't everybody here run a hedge fund??? Any monkey could do it!!! It's like printing money, risk free!!!
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As stated before , HF owner must
sell he's personality,company name to
broad public .
To find idioten and to be accepted by
idioten mass as relevant person
That is true heavy task .
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As stated before , HF owner must
sell he's personality,company name to
broad public .
To find idioten and to be accepted by
idioten mass as relevant person
That is true heavy task .