Hedge Fund Manager? A question

cta's do not have custodial control of capital and therefore have less of a regulatory headache. Because the funds are not in possession of the cta, there cannot be a madoff scenario, which in turn can make it easier to raise capital.

 

to add to everyone, no my goal is not to run a hf. just to say what hopefully everyone knows by now, the headaches aren't worth it. trade for yourself and fly under the radar. john arnold down in houston gave all his outside investors their money back a few years ago and just trades his and his employees money b/c he doesn't want the probs associated w/ opm. i'd never last as a hf b/c if an investor told me they didn't like a position i had i'd them them to STFU.

when you're a public hedgie like soros, you're subject to enormous scrutiny. after he broke the GBP, he was under so much scrutiny from governments and instead of shorting russia he actually lost the same amount he made from the cable b/c he went long so "show support" for the government" and not seem like an "evil spec". long story short, make money in the dark and f*ck everyone else who doesn't like it.

 

I can only confirm your observations. Running a hedge fund nowadays is not about trading - it´s about investor communications.

Every wannabe investor seems to have the right to ask "strange questions" - to express it in a polite way.

Trading on your own is like being on holiday.

I can understand George Soros very much. Jesus, how did he handle it more than 30 years?

 

What does a hedge fund charge and what returns can one expect to make?

 

My goal is to run a hedgefund.

But like said before running a hedgefund is really running your own business that happens to sell investment returns as it's product.

That's why I want to do it. I want to be a small business owner. I would rather make less money and take on more risk and be master of my own domain than be an employee.

But it's a very personal decision.

 

Fuck that. I rather trade my own capital make money for myself and stay under the radar.

 

So waht would you charge me for investing and how much can I expect to make?

 

Normally HFs charge 2% management fee and a 20% incentive fee (on profits). However, there are times the incentive fee only kicks in if the fund hits a high water mark.

 

those rates are falling fast.

 

+1. esp for institutions. if you got 1 and 10 now i'd be impressed. some aren't even paying perf fees! what's the world coming to. oh i'll tell you. investors don't want to pay alpha fees for beta perf which is what everyone has been saying for years but only recently started acted on en mass.