if you start your own fund how do you deal with?

Discussion in 'Professional Trading' started by chipmunk, Oct 2, 2008.

  1. Those months or even the odd year of flat or negative returns? It's great when you are amknig money but what about the cycles where you are not?

    I am guessing you need to keep plenty of $$'s in reserve to pay your way during these peiods..or have some credit?
  2. This is why hedge funds charge account managing fees (usually 2%)in advance, to pay expenses (office rent, secretary, utility bills, etc.).

    The goal is to be able to survive during adverse conditions, without going broke.
    Insana only lost 5% to their customers (so he didn't collect any performance fee), but his management fees (about 1 or 2 million, wasn't enough to mantain his luxury offices salesman and analysts).