Hello, Has anyone here for ever traded for Old Money (As in an internal Family Office)? If so what was it like trading for a private family office? What was the relationship like and what was the compensation structure like? Has anyone here known anyone who did the above? If so, what was it like for them? Thanks
I know a guy who works at a $5+billion family office in Chicago. Yes it's a famous family and the daughter heir can't even balance her checkbook. Guess how much they allocate to traders? %0.0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
They tend to do more due diligence than other allocators. So, a longer track record with audited returns. They also tend to be very conservative. They look for consistent returns, with small draw downs. They would rather receive an 8% yearly return with 1 down month that is small, than a 20% return with monthly big swings up and down. They also like SMA rather than Hedge Funds, and to work with Introducing Brokers like us, because we will provide them with support and information.
Yup they tend to allocate nothing to trading because it mostly seen as gambling. They might invest in gambling businesses though for example buying out casinos. They are more interested in buying out companies mostly conventional like retails or commodity, real estate or getting paid interest on deposits. Trading is for small time punters. Real money lies in building brands and businesses that provide an actual product or a service.
I also have a strong belief that venture capitalism works better than pure vanilla investments in the open market unless you are really buying shares in a mega commodity firm that is just too big to fail. The idea of accumulating shares before the IPO and dumping them on to the public at a premium is the best way to invest imho. I always say its better to use the money and build brands invest in new brands that are ready to IPO.
A lot of misinformation here. Any allocator including Family Offices and Fund of Funds, has set aside a big or a small part of their portfolio toward a portfolio manager to take positions in equities or options or futures or all of the above. If they set no allocation, they would not interview you. Post Madoff, their due diligence is very high.