Too funny. BTW: I'll do FIX and FAST for $125K/yr if I can work from home, and you buy me a new foosball table. Available by the hour. Call now, our operators are standing by.
Instead of the $125K/yr... how about I pay you 125K pesos... Would I get hold of you if I call and mention about you on QVC?
if the 100 mio $ is invested by 1 client the whole thing is not worth much -- depends also on client structure
In general, my understanding is a (privately owned) profitable hedge fund would have no value for goodwill that most other profitable businesses have. All existing clients can leave at once for ever as another hedge fund can offer better terms and performance once the originator and his skills/ knowledge leaving the business and gone. The originator will keep trading for himself (and others, maybe) with better methods/ systems he would know now or later that would destroy the business further. By no ways a potential buyer would know whether any trading methods/ systems will be fully disclosed by the orignator even that is part of the deal. Just 2 cents.
Isn't it true that hedge funds registered in Ireland can be easily listed as public companies for retail purchase, in general?
You are talking about the "Fund", this thread is about ownership of the actual "Management Company" that collects the fees (performance and management) for running the Fund. The investors in the Fund may get rich, but the owner of the Management Company of a successful Fund gets the richest.
not quite right on the Ireland retail fund Yes, hedge funds are listed on the exchanges there but there are still quite strict restrictions on what determines a QI. Do a google on "QIF" and "PIF" + "Ireland" to see,. The major accounting firms publish free industry papers on this I'm an Irish national in the US and I go back a lot and meet with fund industry people. Ireland is getting tons of hedge fund admin business because of its lighter regulatory touch and low corporate tax rate. Fund management is still dominated by London, NY and Greenwich however
A healthy, stable hedge fund company trades at 15-20 times earnings. This one would be low end... say 15... probably less... say 12. A 30% return for only 5 years (not a full market cycle)... With a relatively modest Sharpe Ratio of 2.0 Is actually very volatile... And could be produced with one big year and 4 mediocre years... So is very likely unsustainable. Since one could fluke those numbers... Your last 2 years MUST be strong... Or throw the whole thing out the window. Over last 6 years I have a 28% return with a Sharpe Ratio of about 3.50... And very close to 5.00 in 2006. But I'm in the $1-2 million range... And can only scale up to about $10 million with my methodologies. ** If my Sharpe ratio was 2.0... I would not be in business ** I doubt that sophisticated people would pay anything near 10 times earnings... But would low ball you just for the assets under management. You should clean it up... and IPO to a less sophisticated crowd... Maybe end up with a $50 million market cap.