Anyone here "NOT" manage a HEDGE fund?

I'm familar with HF not being able to market in general.

However, if you take some of these funds with just gobs of cash how the hell are they raising that kind of money.

That's gotta be one hell of word of mouth at play

 

The more successful a fund the more they can charge.

I would pay 20-30%, but 50%? No friggin way.

 

2words.

Foreign. Dollars.

The big players don't even want guys with low seven figures. They want the foreign $$$. the Kesef. "Royal Oil" families can (and do) put up nine figures without even batting an eye. With that kind of $$$ under management, you can see why most of the All-Stars don't even want attention.

A LOT of people with "Stupid Money" do stupid things.

 

2/50, 3/50 that is crazy.

People with stupid money do stupid things . Well said!

 

=============
equity & bond markets =40 trillion $
mutual funds =9 trillion
hjedge funds =1 trillion $

Source =SEC investigator from the current Congressional hearings on hedge funds ;
rounded to nearest trillion $

 

What a hedge fund charges is *actually*
irrelevant - all that matters is your net return as an investor. You'll find that most professional fund allocators tend to agree.

If your choice is a 20% return with a fund that charges 5 and 50 versus a 10% return with a fund that charges 1 and 20, I think the choice is clear.

Hedge fund managers should be allowed to charge whatever the market will bear.

In the case above, the first manager would have had to return 45% gross in order to net 20% on 5/50 and in the second, 13.5% gross in order to net 10% on 1/20.

So it should be clear that in order for someone to "get away" with an "egregious" 5/50, they have to have something very special under their bonnet as their hurdle rates are much higher.

 

This is a calculation based on open interest.

If it were daily volume, the contribution from hedge funds would be significantly larger.

 

I do not manage a hedge fund but I do hedge a managed fund.. does that still count

 

I'm interested in you coughing up the url of that source. It seems a little off to me. Not saying you made it up, I'd just like to read what you read.

Also, are those figures including overseas markets, motion picture production investments, real estate investments, and trading baseball cards? Hedge funds aren't vanilla like the mutual funds...

 

Those figures sound about right. I think you're saying that most every LLC or "deal" could be considered a "hedge fund." You're perhaps right conceptually but since many partnerships don't report (to anyone except the IRS) it's hard to say the number. Bottom line: fixed income dwarfs everything.