Quote from DGunz:
Not to speak for him, but I think this question comes up often enough, he probably is already at his strategies maximum potential, because at a certain level it is relatively "easy" to borrow money either through financed over night leverage or profit sharing agreements with your prop firm, with merely 3M or less for colateral Im sure most firms would back him.
So in any case, superior traders will never manage OPM until they exhaust all of their resources before managing OPM , and even then, the amount they are able to raise should be several factors more than what they can come up with alone. So even if he could raise 1M more in OPM, that would not motivate him enough to dilute his own share.
Assuming you are using a 2% overhead & 20% performance fee, he would need to make roughly 5 times more for his clients just to make what he could have for himself. He would probably look for alternate avenues of funding vs just managing OPM.
There are funds that have assets of 30-100 million, but what we are talking about are traders that have superior statististical edges that consistantly makes money and not merely trying to "beat the indexes" as so many mutual funds and private funds do. He greatest edge is likely his small size.
