So You Want to Start a Hedge Fund? Lessons from 120 early stage hedge fund investments,..

Discussion in 'Wall St. News' started by dealmaker, May 25, 2016.

  1. piezoe

    piezoe

    No, even for the funds around a long time, only one, or two perhaps, if you are considering returns over decades. [ And you don't count those where the bosses were sent to jail or had to pay massive fines, had to buy their way out of prison, or eventually had massive losses because of over leveraging and huge risks.] Typical, annualized long term returns (decades), for most hedge funds, after fees and expenses, beat bonds -- similar to 9% I think. I may be wrong however re Soros' fund, which is now a private fund, being the only one to return over 30% for a long period. Besides Soros' fund, which returned over 30%, annualized, for thirty years, there may be another. If there is, that would probably be Renaissance, for well over a decade certainly, and maybe approaching 30 years. It's been around a long time.

    IMO, any one who expects a return over time from a hedge fund, after fees and expenses, over 9% (which is extremely good, by the way, if it is after fees and expenses) is deluding themselves. Of course one can always get lucky.
     
    #11     May 29, 2016
    ironchef likes this.
  2. newwurldmn

    newwurldmn

    Off the top of my head (20%+):

    SAC
    Renaisannce
    Duquense
    Soros
    Tiger
    Tudor BVI
    Warren Buffet
    Marvin Schwartz of Strauss Group

    My point is that there are more than 1 or 2 funds that boast a long term CAGR of 20-30%. But most of that CAGR comes from the early years when the fund is small. most investors never realize those returns as they invested later.

    And if you invest in most of these guys now, you should be lucky to expect 9%.
     
    #12     May 29, 2016
    ironchef likes this.
  3. ironchef

    ironchef

    I was stating their goals. but, there are some good ones: e.g., George Soros, e.g., Stan Druckenmiller among others.

    However, most hedge funds that you and I can invest, who are struggling to raise money, are not that good and I am better off being my own hedge fund.
     
    #13     May 29, 2016
  4. piezoe

    piezoe

    That's right. I agree.
     
    #14     May 29, 2016
  5. dealmaker

    dealmaker