If you run a hedge fund, what are your most critical issues?

Discussion in 'Prop Firms' started by hanneswas, Nov 2, 2021.

  1. MrMuppet

    MrMuppet

    compliance, transaction reporting, audit. That shit costs you an arm and a leg...everything else is peanuts
     
    #11     Nov 2, 2021
  2. ajacobson

    ajacobson

    A talented/experienced crew
    Make certain they have correct technology
    The crew is compensated in line with industry norms or better
    In house software, development and they're paid as well as traders
    Covid taught us a lot about working remotely - don't get caught short in the future
    Traders have families and you need to consider their needs and time
    Outstanding stock loan relationships
    Multiple banks for execution/ centralized clearing
    The ability to transact worldwide and 24/7 where relevant
    Managing the interaction between traders and offices
    Transaction costs are relevant, but stock loan can be more important.
     
    #12     Nov 2, 2021
  3. RedSun

    RedSun

    At the heart, it is the risk management. That connects all the dots of technology, talent, finance and strategies.....
     
    #13     Nov 2, 2021
    comagnum likes this.
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    Last edited: Nov 3, 2021
    #14     Nov 3, 2021
  4. traider

    traider

    Depends on the type of hedge fund.
     
    #15     Nov 3, 2021
  5. %%
    I never thought much about hedge fund traders families\but good reminder.
    Seldom think about marketing/ads +drawdowns, or max dd, but i realized from Jack Schwager top traders/Hedge fund book/ many do consider drawdowns a lot LOL ..........................................................................................
     
    #16     Nov 3, 2021
  6. hanneswas

    hanneswas

    #17     Nov 3, 2021
  7. Ask Bloomberg.
     
    Last edited: Nov 4, 2021
    #18     Nov 4, 2021
  8. hanneswas

    hanneswas

    Well, basically I would expect this: the fund offers individual ROIs. So account A can have an ROI of -10% while account B has an ROI of +10%. The traceability is something what is currently in discussion.
     
    #19     Nov 4, 2021
    Gazillionaire likes this.
  9. 777

    777

    "Not being able to beat a passive benchmark after expenses and fees".

    Most hedge funds are scams in that they know they are minus EV after expenses and fees when rated against reasonable passive benchmarks, especially if they hold tens of billions of dollars, and even on a risk adjusted basis.

    Notable Exceptions:

    + Ed Thorp had a long running nice edge over the market with a warrant vs stock system. He honorably shut down when his edge went away.

    + Medallion fund, capped at ten billion, has averaged over 63 percent a year before fees with only one losing year-- and they have nice edges. Alas the fund is open only to founders abd employees.

    + Less clear to me, but I believe this too be true, is the fund run by legendary Stanley Druckenmiller which operates over many asset classes. Alas he returned all outside money years ago.

    (Well .. of course if I ran a fund I would make sure I provided ba meaningful edge! Oh... yes. they all claim this, unless they bring out the risk adjusted uncoordinated bets pitch)
     
    Last edited: Nov 6, 2021
    #20     Nov 6, 2021