What a country we live in, most can't get close to the Index averages and make millions/billions, it is like rewarding the wrong managers. No different than Baseball Allstars, people vote for their team's players regardless if they are top of their game.
Thank you dealmaker, great link. That main guy was obfiously a bit high on somethingl. But loved that.
I don’t have as much capital, but I’m good looking and my trading strategy is more successful. It’s just now a matter of time.
Hedge fund mangers are supposed to give absolute returns (low beta) in up or down markets. SPX was up 23% in 2017. The guy who got 41% return was probably levered stocks and Im pretty sure he would be hurting if the market was down 5% instead!
Actually, been working to this new goal started 18 months ago with my best buddy on programming automation, start off private 2-3 years, then see if we want to go with just institutional-much less headaches and having to find talented employees as many hedge funds have hundreds they are seeking being open to the public. We are expecting end of year of going live with a scalping/day trading system I have developed, then onto long term commodities, then stocks. Am at an age where I don't know if I go beyond ten years from now as I be 72 then and partner never started any business before, so it be interesting and fun. This is first year I have used margin for stocks in January as more of an experiment, and I overly hedged and hedged open profits, using Index futures, so have done well. But I have mixed ideas of what Hedge funds, do they even ever hedge?
1) There is more than simply one, US-centred "market". Actually I am trading more than 190 markets around the globe. 2) So what, if the 41% guy levered US stocks "only"? 3) Comparing 1 yr returns of hedge fund managers is pretty much pointless. 4) 95% of hedge fund managers starting a hedge fund strategy never raise more than $100 million even if their strategy is beating regululary on average the 5% of the wolves pack. The reason is - despite better average performance - wrong and unexperienced marketing strategies. And this has to do 100% with a rookie operational set up! 5) There are only a hand full of "hedge fund managers" returning on average more than 20% over the last 25 years. Go, make your research, and come back to me and NAME THEM! 6) A complete hedge fund managers is not only punting one market. Most of the good and reliant ones make money where you never would even take a look. Nighthawk