Anyone here "NOT" manage a HEDGE fund?

Discussion in 'Wall St. News' started by F-Trader, Jun 26, 2006.

  1. Unbelievable!

    MSNBC said there are approx 11,000 different hedge funds in the US alone. :eek:

    This does not incl mutual funds, individual traders, insurance co's, etc...

    How many damn people are trading stocks?

    What exactly is the definition of a Hedge fund?

    How much $$$ is needed?

    Is there any type of Registration needed?


  2. maxpi


    In the late 90's there were more mutual funds than stocks. Not sure what the ratio is now.
  3. I manage a $100M hedge fund...go me ^_^ (i really do btw)

    Sounds like you think that you can just start one up and investors will throw money at you? Like seriously, is it that hard to google 'hedge fund definition' and read from there?
  4. God, please bless me with a few hits of what he's on... 100mm and he's using tradestation. Wonders never cease. Go you.
  5. Ok retard, where did I say I wanted to start a Hedge fund?

    I have NO desire, I trade with my own money and make a good living. My WORST year in the last 7 years has been $338,000, my best was 1.7M in 2001.

    I wanted REAL world answers, not some friggin SEC crap.
  6. A new nominee for the Darwin Award makes his way to the podium.
  7. Riskarb, just how many nominations are you making this year?...I've lost count :D

  8. NTB


    What exactly is the definition of a Hedge fund?>>

    Any Fund structure where you can charge at least 1/20.
  9. tireg


    Yeah it does seem that everyone and their mom runs a HF nowadays. But there will always be the BIG players (SAC, Renaissance, Citadel, etc) with billions and huge money and the smaller ones with a few million. In HedgeHogging Biggs thought having raised "only" 600MM or so was tiny compared to his institutional buddies.

    Anyway the great concern is that with little regulation in place for these HF's the SEC gets nervous b/c the amount of aggregate money that they run is mind boggling, especially because many are unregistered or unknown. Their sheer size makes them a market force on their own.

    An example of an abuse of this power is their correspondence with independent analysts b/c of possible insider-type trading or market manipulation.

    Not to mention the HF scams or Ponzi-scheme type deals such as those we've seen recently

    That's one of the reasons, IMO, that one needs to be an 'Accredited Investor' so normal people won't lose their hard-earned life savings. This requirement itself can be debatable, however, as these nonaccredited investors could arguably face even more risk trying to play the market by themselves with no understanding of what they're getting into...

    The nice thing about HF's are that they are pretty much self-regulating on a survivorship bias as the ones that do their job and achieve good returns retain their investors and attract new ones, thus becoming larger, and the ones that don't face withdrawals and shutdowns.

    Yet with the increasing amount of craziness such as Funds of Funds and Funds of Funds of Funds, some think that this HF mania may just be nothing more than hype.

    Where will it all end? Hard to say b/c the big players are very influential... kind of reminds me of Wall Street.

    All in the search for Alpha.
  10. Sorry, your post made it sound like you were the typical l33t ET internet trader who was ready to start their own fund w/o knowing 1 thing about it :p

    But seriously, how can you make 1.7M in 1 year (which i'd say is pretty damn good for 1trader on personal capital) and not know hedge fund basics :/

    If you do'nt mind me asking, what was your %Rtn on your 1.7M? Just curious because I'm going to take a wild stab in the dark and say you did that on/around $5M (am I right, am I am I? :D ), which gives you more balls than me - I'd never risk more than a few thousand of my own personal money trading (just don't tell any of my clients that....they might be pissed that I'm willing to take market risks with their money but not my own) ^_^

    Mmmm, Alpha *droolz*
    #10     Jun 27, 2006