Not to mention that he was introducing capital to additional layers of management fees. Regardless, in the end, it seems that the "family" just didn't get along.
The management fees didn't matter because Insana's "minimum" was only $500,000. He was trying to exploit a niche in the marketplace that would offer the "little-guy" an opportunity to have access to the top performing fund managers, without having to pony up the high minimums. Try getting access to SAC for only $500,000. They won't even pick up the phone unless you add a zero to that number. A lot of the idiots on this thread don't seem to realize that.
Actually it's similiar in that you have to pick good funds so there is quite a bit of analysis involved in choosing which funds will perform best with the best risk profiles. That being said, I doubt he was the one doing the analysis of the various funds and he was just using his name to gather cash and direct it to wherever his Analysts told him to. In the end, he is just a guy reading off a telepromter. Could you ever imagine writing a large check to Maria Bartiromo for investment advice?
Management fees don't matter? Really? Even when they are layered? If you say so. No doubt, Mr. Insana's clients have nothing but gratitude for his remarkable ability to open the just right doors at the most opportune times. I agree that Mr. Insana was indeed trying to exploit a niche. And I have no doubt that he tried his best, just as I would try my best to build you a house if you paid me well enough. Of course, I know nothing about building houses, but I appreciate good architecture and enjoy discussing it with others.
It's not that he can't manage money, but that his prior commitments w/ the hair club for men are becomming overly demanding. Sy can be a real prick at times.
You're completely missing the point. He was essentially an exclusive broker, that's why you paid him a fee. You were paying him for his relationships & contacts. That's the real world, relationships, contacts & nepotism is worth a lot of money. Bottom line, his clients wanted in on the elite hedge funds and this was the only way to do it. That's all.
Exactly. As I said earlier, SAC won't even pick-up the phone unless you have $5,000,000. Insana gave investors access to a dozen or so Funds ( including ) SAC for only $500k.
I know exactly what the difference is...add up the fees, anyone "investing" through him would only get about 30%-40% of the overall return of SAC. Maybe I'll start a firm to introduce people to the firms who introduce people to hedge funds. The minimum can be like $10,000.
Exactly. And perhaps I'll start a firm that will introduce people to you. My minimum will only be $1,000. After all, what's one more layer of management fees? As Landis82 pointed out earlier, fees don't matter.