So You Want to Start a Hedge Fund? Lessons from 120 early stage hedge fund investments,..

Chronic difficulty and failure raising assets: Why 89% of all hedge funds never get over $100m

I don't understand why they have to raise so much money. Hedge funds routinely claimed 25%-30% investment returns. A $100M hedge fund, even with a 2/20 structure, will grow to over $1B in less than 13 years, assumed a 30% return. Without the 2/20 structure, if they invest their own money, fund managers will be billionaires within 10 years. So, my conclusion is if they are any good, they don't need my money to get rich.
 
I don't understand why they have to raise so much money. Hedge funds routinely claimed 25%-30% investment returns. A $100M hedge fund, even with a 2/20 structure, will grow to over $1B in less than 13 years, assumed a 30% return. Without the 2/20 structure, if they invest their own money, fund managers will be billionaires within 10 years. So, my conclusion is if they are any good, they don't need my money to get rich.

How many have 25%-30% annual returns?
 
In the history of hedge funds only one has achieved 30% average return over the long haul.

A lot of funds have (most of the large "vintage" funds). But the returns are biased to a long time ago when they were small and there were few participants running hedge fund strategies.
 
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