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
It's all about alpha, if you can make 100% alpha over your cost of living (which is your benchmark) then yes it's spectacular, but you cannot and will not be able to, we can make more money than god but here's the problem you nor anyone else will have experience of and almost certainly never will.
When you manage money you need to create a positive alpha for yourself and also a positive alpha for your investors, this never happens which is why it's taken a decade for us to come to the exact numbers with supporting fintech and processes to achieve that exact outcome, all other money managers will create a return say 20%pa and 14%pa after fees on 2&20, but who generates alpha on those numbers is variable, is it the investors, is it the money managers, is it both, is it neither.
We can and do generate 300%pa but it could never be for you, simply because your entire approach is to generate alpha for you which will invalidate the alpha for any manager making it, we know because we've done it and that is exactly what happened, I'm out $100,000s just this past year because some investor wanted $100,000s managed at these levels and they invalidated all parties returns back to base capital*.
People can make 200%, 500%, 1,000%pa (which you can't do with a job) but if their benchmark is cost of living and that 1,000% on $5k is $50k yet their cost of living is $50k then they made zero, every number you will see publicly is based on this, in the years of looking at this site and others I've seen a couple of people who actually made real alpha.
I can tell you that we had an analysis report of Boeing at its highs in 2019 with a target to $100 which it hit 1yr later, 100shares of that shorted makes you a simple $30k, the number of research reports we have every week and month for profits like this are beyond spectacular, so why not manage money for anyone else, because you are wired to make sure we lose our alpha to generate even $1 more profit for yourself, there are more interesting things in life to do, namely watch investors and money managers fight to gain more alpha while having a ringside seat!
