Investing in Hedge Funds...

R

Rearden Metal

I'm looking for some decent hedge funds to invest in.

Back when I was young & naive, I'd just look over the stats of various funds on hedgefund.net, and then put my money into funds that put up good numbers. Luckily, I wasn't conned- But I'd rather not press my luck by going into any more investments completely blind.

Now that I'm aware of all the sleaze & fraud that takes place in this barely regulated industry, and I know now that the numbers you see don't necessarily have any basis in reality: Anyone here have any first hand experience with some decent performing and trustworthy hedge funds? I don't like to over-concentrate, so the minimum investment would have to be $1/4 mil or less. No new funds- I need to see a track record.

I'm obviously not going to throw my money at the first program some stranger vouches for... but it could give me somewhat of a starting point... or I'll just get a bunch of useless smart-ass replies, which is fine too, since at least I'll be entertained...
 
http://www.dealbreaker.com/2006/10/better_know_a_trader_timothy_s.php

Sorry RM...I couldn't resist. :D

A relative of mine works for the Zweig-Dementia fund (not sure if that's the correct spelling). I was planning on putting money in there a couple of years ago, but they raised the minimum to 4 million. :eek: (I believe it was $500k previously).

Last I heard the fund was up 85% so far this year.

DAMN!!!!! :mad:

I have looked for some smaller minimum funds, but it seems they all have little to no track records.
 
Quote from Surdo:

It's Zweig Dimenna!

Dementia is something else, perhaps applicable to a few Elite Members here.

surdo
More...

Quote from Longhorns:

A relative of mine works for the Zweig-Dementia fund (not sure if that's the correct spelling).
More...


Thanks for the correct spelling. I knew it didn't look right, but I wasn't exactly sure of his last name. :)
 
"What are you looking for? Long/Short Equity? Managed Futures?"

----> I'm prone to avoid forex, trend following futures, and anything that's mixed up in the sub-prime mess... but other than that; If they've got performance, talent, and a plausible strategy- I'm interested.


"I have looked for some smaller minimum funds, but it seems they all have little to no track records."

--->Yes, that was certainly the case a few years ago... but if you use hedgefund.net 's new 'advanced search' feature, the results may surprise you. I just ran a search there for funds at least four years old with at least 15% average annual return and a $1/4 mil minimum or lower. Guess how many results popped up?... 158.

Anyways, thanks for the lead on this Sykes fellow. Very impressive! I hope he'll be willing to at least <i>consider</i> taking my money...
No, but seriously we really should take it easy on poor Timmy today. Sadly, he's just suffered a major setback. In his words:

"When I shorted 200 shares of Force Protection (NasdaQ: FRPT) on Friday afternoon at $11.20, I was expecting... but, similar to hitting a pool ball into a pocket you didn't call, I was not rewarded for my efforts.

In the end, FRPT finished down 11% at $9.60, but not before an early morning spike to $11.80 scared me and a few other shorts out of our positions. I covered at $11.25 (before the morning spike), <b>for a devastating loss of $25 including commissions.</b>"
 
You can invest in publicly traded closed-ended hedge fund floats in the UK, Amsterdam and Switzerland. You will be able to buy them with most international brokers. E.g. the list below is available for trading with IB. While these stocks may trade at a premium/discount to NAV you will basically get daily liquidity (with a spread!). Since these are public stocks there is no minimum investment.

Here are some to start you off:

Fund of Funds:
http://www.cmaglobalhedge.com
http://www.dexionalpha.com
http://www.dexionequity.com
http://www.dexionabsolute.com
http://www.dexiontrading.com
http://www2.goldmansachs.com/client...osed_ended_investment_companies/resident.html

Most of the FOFs above allocate 50%-60% to equity strategies (equity L/S, event driven), the rest usually goes to macro and CTA/trendfollowing funds. You will find exact allocations and premium/discount to NAV data in their information material.

Single HFs:
http://www.bhmacro.com (discretionary macro)
http://www.thirdpointpublic.com (activist value equity)
https://www.mwtops.eu (L/S equity)
http://www.bgholdingltd.com (discretionary macro/fixed income)

Good luck.
 
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