Registered: Apr 2011
10-11-12 12:26 PM
Quote from chipmunk:
I can't say I have ever seen one..but why not?
We all know for small accounts (this is proably where it becomes aproblem for mnaged money..but surely say a group of 10 people at $100,000 each it's fine?) day trading is where you can hit the biggest % wins (obviously you still need to trade good)
So imagine i have $100k to let some pro invest for me
1) Huge Mutual Fund: 6% per annum. 4 % fees.
2) Hedge Fund: +15% 3% fees.
3) Good day trader: +70%, 10% fees. (4.5% per month compounded. No gambling)
Which one would I rather invest in?
At least if you capped it at say $1m you wouldn't have to psend your whole life chasing Assets to manage.
It's a tiny micro niche to managed money....or is there a huge flaw?
when managing 10 peoples money, your fixed costs get relatively high... lawyers, compliance, etc. Will 70k fund that and your lifestyle?
and 4.5%/month may or may not be gambling, but can you show that you won't have any substantial drawdowns? The HF producing 15% generally does so year in and year out.