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.
I used HF 15% as an example. and intra day trading drawdowns are much lower than end of day In my experience. So it basically comes dowen to overheads do not economically allow for this? But for the small trader/Investor it's still more profitable.
and 4.5%/month may or may not be gambling -------------------------------------------------------------------------- And if drawdowns are less than 4% per month?
I thought there wa s structure where less than 15 you could avoid al lthe B*S* (money grabbers) that goes with managing O.P.M.? --------------------------------------------------------------------------------------- when managing 10 peoples money, your fixed costs get relatively high... lawyers, compliance, etc. Will 70k fund that and your lifestyle? --------------------------------------------------------------------------------------- I meant actually 20% Even higher if you could those high % gains. I do not think it's anything out of the ordinary for a $1m day trader to be hitting 60-70% gains....Once you get bigger your get more limited in how you have to trade which effects results.
I'm under the impression this is kind of what Gilder Gagnon Howe does. AFAIK, a broker will manage the account in an aggressive manner looking for strong growth - struck me as kind of investing your money with a "daytrader". http://www.gghc.com/ ...that said, I've known some people to be very happy with their returns and the company has done well for itself over the years. I have no 1st hand knowledge though.
Everyone here somehow take this on faith... but have you ever met a single day trader here who's done this kind of returns for more than a single year?
Its extraordinarily rare-- like the guys who win lotteries back to back-- HOWEVER, i think Niederhoffer did it when he turned 100k into 35plus million back in the early 1970's. But remember, he had the computer/data edge before anyone was using it. surf