well, the way I see it, if I ever can get a hedge fund up and running and funded, I'll give investors a clean 10% apart from my 2.5% management fee (I'll never work for less) and profit splits - that's fair. but no more for them. plus, my goal is just to be among the top players, not the top fund % producer. that way it'll give my fellow HF managers some room to breath. just getting a cut of the money would be fine with me, since I can then take that money and trade it in my own account. It's the trading in my own private account that will bring the big bucks in, not running public money.
Do A) and E) not contradict each other, i.e. you say the first 25% is completely for the investor, yet in E you say if you make less than 25% you want 5% so A is not what you meant. No offence man but you're not living in the real world.
good point you brought up, Marky1, gee, I didn't realize that! |:B (LMAO) Just kidding. No, actually, it's a subtle distinction. sorry for the misunderstanding. the difference is this. let's say the funds manager/trader produces 100% profit in the 2-year lock-up period. the investors get 25% "clean." the manager/trader gets 75%. check this out: say a manager/trader (MT) has a $1b fund. after the two-year lock-up trading period the MT writes the investors a check for their principle PLUS 25%. done. then he writes himself a check for $750,000,000. however, IF the 25% target mark is NOT hit, THEN a sub-structure kicks in, in which the MT gets a straight-up 5% (or more or less, however the individual HF is set up) management fee. see? the more Competent the Trader the higher the management % fee. example: any granny can daytrade equities these days in the stock market. takes a little more knowledge of how to swing around derivatives and maybe try to pull off corporate 'raids' on broken down companies to kick around the old executive stiffs, so leave that slacker stuff to the PhD quant scrubs to try to make profits. but when you're at the level where you can effeciently and effectively swap around global currencies... and make money by design - the MT who can do that isn't even in the same league with typical HF shufflers who strain to beat market benchmarks. that currency MT can command whatever management % fee he wants. on the other side of the secondary sub-structure (downward), a performance % can also be allotted to the MT, OR completely done away with so that the investors net more. overall the later arrangement would look like this: say the fund only makes 24% or 20% or 10% or whatever... the MT's take is 5%, even if the fund makes 3%. Yes, the investors still have to pay the piper. but no 20% performance fee. notwithstanding, all operating/legal/audit expenses come out of the fund. It's pretty simple. It's just a multi-layered pay-off system. overall I think HFs should get back to more closely resembling Alfred Winslow Jones' original HF structure that was more performance-based. we need to flush the fck-ups out of this industry so the real traders can get paid what they are worth. the slackers just water down payday: they're in the way. they need to get competent and effecient or go back to sweeping the floor at Walmart with their PhD and MBA degrees. Just like in the markets, 95% of participants don't belong there, same in the money-running industry. then again, maybe we should keep 'em in. 1. they jam the SEC's machine. 2. they make investor's appreciate the value of a real trader.
no one will invest on those terms - because you get 5% if you lose everything they put in. You have 0 risk, you always get paid. I certainly wouldn't put money with you no matter how good you may or may not be, on those terms.
Thanks - just a word of advice, go talk to a couple of the big boys in the hedge funds or banks, they may be able to give you some tips as I get the impression you spend your life on this board - unusual for a hotshot!
who made you my social counselor? or my investment advisor?? "talk to a couple of the big boys??" they should pay me $200,000,000 a year just to post here! *BUSTS UP LAUGHING* c
Listen pal, let me quote you "Nice Short trade unfolding with the Euro. I'm up $1200 on only 2 lots. Currently trading at its 100-day moving average of 1.2335" Do yourself a favour - get back to your 2 lots mate, I don't even know why you are asking questions about 100+ million dollar funds when you were trading 2 lots a few weeks ago - you're a fukin joke of a trader ok.