Aaron is a good guy - he was kind enough to answer a PM I sent him when I was just getting into systems development. He answered my questions as fully as he could and made me feel like I could do good things if I put in the hard work. The guy is a high-end MIT quant but he still took the time to answer a n00b's anonymous request. Regarding his drawdowns: he adapted, and that is what should be pointed out.
My observation from watching the IASG.com database over the last few years, is that the funds with very consistent month over month returns, and small drawdowns attract capital very quickly even with moderate returns. While those with big equity swings or long drawdowns dont attract much capital even if their overall return is quite high.
Yes for sure, i seriously didn't want to have it come across that i am smearing Aaron. He seems like a nice guy and is definitely got a very good pedigree....i would never attack an MIT grad that also worked with Monroe Trout So i appologize in advance to Aaron for any construed negativity. Honestly...i was just curious what the sales side might be saying. Unfortunately, part of AUM growth...at least i think...is sales. Which sucks, as i am terrible at sales...and i don't like it either That is why i like trading....but for smaller under the radar funds, i think it is useful to discuss sales side comments and everyones experience with them. Or better yet...how many fund managers have just done all the sales side themselves?
I doubt Aaron took your post that way, Osiris. When he had that big drawdown, he was getting dissed badly by some guys who sit around in their underwear and dream about the $5k they lost in three weeks. He never once came close to losing his cool. Your comments don't even come close.
You should try to get money from the guys at Ramsey Quantitative. I think they have a division in Chicago that holds a contest to fund emerging CTAs. I don't have contact info for you, but, they are not that difficult to get money from. I think they allocate to about 100 emerging CTAs about $3 Million each allocation.
Hahaha...the ever omniscient armchair trader You have to love that...i find it interesting when people find out what i do, how the vast majority want to tell me how to invest/trade than ever ask me how i trade I tried to be candid in admitting that i have had some bad months as well....i actually find it interesting that most big institutional money is rather extremely risk averse...seeking very solid monthly consistency. Very tuff for any position traders, monthly consistency seems to almost preclude anything but some form on intraday trading methodology. Granted i know there are some very successful hedge funds like Seykota, Kovner, and other trend followers. But some of the turtle traders seemed to suggest the same finding...that their investors wanted lower volatility despite the lower returns.
April 2nd update---The Schindler Fund had a 4.6% loss in March and is up 16.1% for the first quarter and the year to date. A small drawdown for the month, but 16.1% for the first quarter is a solid number. Good job Aaron.