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Position sizing at fund level, how do you invest $50million?
- Thread starter mizhael
- Start date
Your best source of advice is: YOUR INVESTORS
Ask them.
Be completely honest. Tell them: "I have no bloody idea how to invest this $50 million, what do YOU think I should do?"
They will admire you for your honesty and humility. They will also surprise you with the sagacity of their recommendations and advice. After all, they didn't accumulate $50 million of risk capital by being stupid. LISTEN to what they say and give it due consideration.
These millionaires (your investors) hired you because of your expertise and your above-the-crowd knowledge ("alpha") . When you admit that you have none, and that you need help, they will find it endearing and encouraging. Ask the millionaire experts!
Leverage the resources you've got! Very few people have access to the kinds of insiders that your investors represent -- treat it as an Unfair Advantage.
Ask them.
Be completely honest. Tell them: "I have no bloody idea how to invest this $50 million, what do YOU think I should do?"
They will admire you for your honesty and humility. They will also surprise you with the sagacity of their recommendations and advice. After all, they didn't accumulate $50 million of risk capital by being stupid. LISTEN to what they say and give it due consideration.
These millionaires (your investors) hired you because of your expertise and your above-the-crowd knowledge ("alpha") . When you admit that you have none, and that you need help, they will find it endearing and encouraging. Ask the millionaire experts!
Leverage the resources you've got! Very few people have access to the kinds of insiders that your investors represent -- treat it as an Unfair Advantage.
Quote from MGJ:
Your best source of advice is: YOUR INVESTORS
Ask them.
Be completely honest. Tell them: "I have no bloody idea how to invest this $50 million, what do YOU think I should do?"
They will admire you for your honesty and humility. They will also surprise you with the sagacity of their recommendations and advice. After all, they didn't accumulate $50 million of risk capital by being stupid. LISTEN to what they say and give it due consideration.
These millionaires (your investors) hired you because of your expertise and your above-the-crowd knowledge ("alpha") . When you admit that you have none, and that you need help, they will find it endearing and encouraging. Ask the millionaire experts!
Leverage the resources you've got! Very few people have access to the kinds of insiders that your investors represent -- treat it as an Unfair Advantage.
okay let me be more specific.
I do have a bunch of trading strategies... but those are at the strategy levels... the potential investors are businessmen and they may have idea about invest in this and invest in that... but they also don't have idea about how to divide capital into risky and risk-free capitals...
At my strategy level, I used to run the basket of strategies targetting at a specific VaR every day... but then again, what's the mapping between daily VaR target and the amount invested as risky capital out of $50M?