a friend is going to start a private fund with $5MM AUM. His target is 30% annualized return. He mostly would do swing trades (holding period from 1 week to several months) and some risk arbitrage (for exampe yield curve spread, stock or ETF paris trading) and take small directional bet in currency and stock index. He was asking my opinion. I just wonder if 30% doable for 5MM aum? seems to me most hedge fund cannot achieve that results and AUM of 5MM is too small to have any edge. any thoughts?