Money Management Question

[trendisyourfriend]

Hi all, I have a question about money management.

Jordan Belfort once said in a podcast that money managers who can produce a consistent 25%+ monthly return can make a lot of money in this business. Not only do they have a high return, but they also can command a higher performance fee and management fee from their investors.

Is it absolutely necessary to make 25% a month in order to make money as a money manager?

What if a trader makes 100% a year? Is that still considered top performance?

Thanks

 

[danielc1]

Do you know any money manager that makes 25% consistently a month? Or even per year?

 

[SunTrader]

Hi all, I have a question about money management.

Jordan Belfort once said in a podcast that money managers who can produce a consistent 25%+ monthly return can make a lot of money in this business. Not only do they have a high return, but they also can command a higher performance fee and management fee from their investors.

Is it absolutely necessary to make 25% a month in order to make money as a money manager?

What if a trader makes 100% a year? Is that still considered top performance?

Thanks

Where's the question?

Money management is not performance.

 

[smallfil]

Hi all, I have a question about money management.

Jordan Belfort once said in a podcast that money managers who can produce a consistent 25%+ monthly return can make a lot of money in this business. Not only do they have a high return, but they also can command a higher performance fee and management fee from their investors.

Is it absolutely necessary to make 25% a month in order to make money as a money manager?

What if a trader makes 100% a year? Is that still considered top performance?

Thanks

Michael Covel in his book Trend Following compiled the performance of top hedge funds for a number of years, by and large, each year they made monies, one or two years, they had small losses. However, on average, their returns was 18-20% per year. The Medallion Fund blew up its peers because of its super performance. Very few hedge funds have such high returns. It probably, uses a programmed algorithmic model to spot inefficiencies in the stockmarket and able to take advantage of it. Maybe, a huge trading robot that humans will be unable to match? Here is an article on the Medallion Fund.

https://ofdollarsanddata.com/medallion-fund/

 

[deaddog]

People were lining up to invest with Madoff who was returning 12% a year.
If you can show a track record of 100% per year you can charge hedgefund fees of 2/20 2% AUM and 20% above a benchmark.

 

[murray t turtle]

Is it absolutely necessary to make 25% a month in order to make money as a money manager?

What if a trader makes 100% a year? Is that still considered top performance?

Thanks

%%
NO.[edit, no, not the top]
Some markets, not many/ do a lot better than 100% gain .
Some moon or space rocks sold for a much better than 100% gain , but those low volume markets tend to be real uncommon..........................................
Actually i sold a special rock to rock dealer many years ago;
but even most miners or dealers dont make 100% per year consistantly.
Did the SEC agree with ''25% per month??''
If they dont\ that's not a big trend , that's big trouble. Good question trend=friend.

 

[expiated]

I find it interesting that anyone would heed what someone who was a financial criminal once said in a podcast.

 

[TheDawn]

Hi all, I have a question about money management.

Jordan Belfort once said in a podcast that money managers who can produce a consistent 25%+ monthly return can make a lot of money in this business. Not only do they have a high return, but they also can command a higher performance fee and management fee from their investors.

Is it absolutely necessary to make 25% a month in order to make money as a money manager?

What if a trader makes 100% a year? Is that still considered top performance?

Thanks

For me, if I am making 25% a month wouldn't bother to manage OPM. I will be quietly trading my own money and just enjoying the rest of my life. 25% a month is more than 100% a year, that's 300% a year. LOL Having said that, I am sure there are money managers out there that are making triple-digit returns, especially the ones who genuinely trade VIX instruments so yeah they will be considered top performers I guess.

 

[TheDawn]

People were lining up to invest with Madoff who was returning 12% a year.
If you can show a track record of 100% per year you can charge hedgefund fees of 2/20 2% AUM and 20% above a benchmark.

Annual return of 12% is nothing. Nasdaq's annual return is lot higher than that. Even the S&P 500 has returned 20+% in 2021. What's different is that Madoff's return is 10% EVERY SINGLE YEAR with no down years. That's what made it "interesting".

 

[kmiklas]

Hi all, I have a question about money management.

Jordan Belfort once said in a podcast that money managers who can produce a consistent 25%+ monthly return can make a lot of money in this business. Not only do they have a high return, but they also can command a higher performance fee and management fee from their investors.

Is it absolutely necessary to make 25% a month in order to make money as a money manager?

What if a trader makes 100% a year? Is that still considered top performance?

Thanks

Shit man a consistent 1%/m will land you a job as a fund manager.