*LMAO* Neil, you're too much. a thousand!! dude, remember, *ahem* my trading account size? you got money coming out of your ears (via your HF) - me, just a private trader - every nickel counts. nah, I think I'll stick to going out with the retired old farts on the deep sea fishing boat on Tuesdays - playing .25 ante. On the other hand, if you want to talk with me about getting a HF up and running.... (that I would like to learn.)
I want to clarify my view of investors. Don't mean to come across as cynical towards people who are successful, successful enough to have extra money to invest in hedge funds. Not at all. The basis of my thesis of re-wiring pay structures is due to the simple cash-fatiness and waste I see happening in the common HF pay structure. In other words, investors are getting too much on their invested money for doing no work to trade out profits. This depresses the whole industry. Example: Per every $1,000,000 traded in the markets (and other HF venues) say, for the sake of round numbers, that every year the profit on that $1m is 10%. Starting off my giving investors 98% ($980,000) is just screwed-up economics. Plus, giving the trader/HF manager himself only 2% ($20,000) furthers the out-of-whack pay structure dilemma. Investors are not "hungry" yet they want to keep the MTs starving so they, like a mule, will keep treading out profits for them. This is universally wrong payment proportions and sound business principles. And there remains very little motivation for highly successful and accomplished private traders to enter the HF industry and trade public money, knowing they are going to get a meager 2% for their trading talents and all their hard work. I know there are one or two well-know HFs like SAC who charge a higher % of performance, but by and large, the overall industry is killing off the best trading talent in the world by its oppressive pay structure even before the best traders enter the business. The principle prevails: An advanced private trader who makes 30% to 40% a year on his own private trading account simply does not NEED to run public money at the current pay rates. Common sense tells you who does need to: The world's worst, most ineffecient and ineffective market participants. This keeps the $100t dollars in assets in a returns environment that is medeocre at best. And whose fault is this? Read the numbers: Fat-cat Investors: 98% of profits. Traders/managers: 2% management fee. That's stupid economics. So, in essense, I see the investors' pay as wasted bloat, as them being overpaid. Therefore, I'd like changes made in the industry to make it function more lean and mean. This will include (but not limited to) longer lock-up periods and greater rewards for competent traders/managers trading profits out of the markets and other viable HF investment options. As it stands, the risks/rewards are WAY out of correct and right proportion. The impact and effect that chopping down the bloated overpay to investors will have on the overall asset/investment industry as a whole will be extremely positive. In closing, I came across the S&P benchmark I could not find the other day, to compare my 29% net profit gain in the last 5-months to. So here it is: The S&P 500 was only up 1.39 percent through September and is down 2.83 percent through yesterday. (source ) sKaLpZ
THESE ARE YOUR RESULTS ON A DEMO ACCOUNT. IT MEANS ABSOLUTELY NOTHING!! Don't you have anything better to do than to make dumb posts and argue with people for 16 pages??
If you are so good, why are you always leaving? You are the biggest idiot I have ever met on the Internet, and that is saying alot. http://www.elitetrader.com/vb/showthread.php?s=&threadid=53871
I trade live forex quotes and got those results. that's what really matters. btw, from the same article: Chicago-based Hedge Fund Research, whose HFRI Index tracks the performance of 1,600 hedge funds, says hedge funds have returned 7.30 percent for the year to date,... fx
//shrug// It gives me something to do besides win all the time...? gee, NewtToad, I didn't think you noticed.
Seem's like anyone these days can start a hedge fund I remember the days of math/physics PhD's starting them up, now anyone with a grade 12 diploma can
Hmmm... "Biography: Im a 19 year old university student, with a passion for trading" in 2002... That makes you what? 22 now? How far back do you remember? 12 grade diploma? Maybe... Just expect to spend $ tens of thousand on compliance... It's not enough just to register an LP or LLC... On top of that you actually have to have or find MONEY to trade... And that's where your a "grade 12 diploma" is not going to help much... Regardless of what most ignorant "traders" think on here, you actually have to be SOMEBODY to raise money outside of your family... By the way, it's kind of pathetic to see "hedge funds" being pianted with the same brush... The only thing that most of them have in common is that they are "unregulated collective investments" that only accept "accredited investors"!
Calm down I remember as far back as when all I heard about hedge funds was the mathematical geniuses that started them. Now i hear from people on the boards that so many hedge funds are started by wealthy people with some knowledge of the field. It was a vague comment and most importantly a joke, so take it easy. I was in no way trying to crap on the hedge fund world here buddy. What do I know, I am only 22 right
one's "formal education" doesn't guarantee MONEY to be placed into one's hedge fund. Performance does. how a trader can step into markets and walk out with better and consistent returns, trading successfully, is what matters. besides honesty and compliance, it's all that matters. anyone else has other concepts of what proper, direct, effective investing is, they're out to lunch.