Unless I'm looking to make a direct investment, what benefit do I get out of questioning his statements? I traded for 25 years. Except the last year where I was looking to leave, my returns were better. I know many traders who did much better than me. If I was looking to make an investment, I'd look at his brokerage statements. Bob
Since I was responding to someone who extrapolated my historical returns over a period of several years, why should I not do the same with my own set of assumptions? Predictions mean nothing, and I've said as much myself. My returns could easily be zero or negative over the next several years as I've acknowledged. Yet we will all make predictions anyway because we need a framework to try to understand where our lives our going. No, I won't let you know if I blow up, because I will be very sad and the last thing on my mind will be to fill you in on it. But if I keep doing well maybe I will show up to gloat.
You got it wrong. Sharpe might not be very imprtont measure at all, peak to valley based on "daily" returns is very important. Based on your monthly peak to valley I would GUESS that your daily peak to valley is 20-25% which is good but might be an issue for OPM.
OP should read thu "Far Hill Groupâs Approach to Third-Party Marketing," an interview in the current Bloomberg Hedge Fund Brief. Addresses his questions from the vantage of an experienced, successful fundraiser.
I was not aware of this publication but I am very interested after reading some sample articles. But at 1k a year, I'll have to add it to the list of things to get if I make it big. Would this article and other articles from this publication be available on the Bloomberg terminal?
-------------------------------------------------------------------------------- Quote from macintash: You got it wrong. Sharpe might not be very imprtont measure at all, peak to valley based on "daily" returns is very important. Based on your monthly peak to valley I would GUESS that your daily peak to valley is 20-25% which is good but might be an issue for OPM. -------------------------------------------------------------------------------- On second thought I can only assume you mean peak to trough draw down of 20 to 25% based on daily returns. I don't know how you would deduce this based on my worst monthly DD of 5%. I imagine that in your heart you wish for me to be hiding something, to have only achieved my results through taking on substantial risks. Only through this bias can you conclude illogically as I've presented no information to suggest such a large peak to trough draw down. In fact, my peak to trough draw down is in the order of magnitute of 8 to 10% during this period.
Also, unless you have in-house or do it yourself, a capital intro marketer could raise money for you, but he takes up to 5% of the amount in a one time charge to you. The business is full of rabid individuals and you're just a tool unless you get to the big time. I have a suggestion for you. Start a blog or website commenting on trades you take. Post trades and monthly/quarterly/yearly returns. Utilize social media like Twitter. You will surely get a following then, and you may be surprised to find someone willing to invest in you.
BRIE |Go| 4 |Go| 10 |Go|, pg 14, is the article, and back issues are archived and available. Also you might read the QIM chapter in the new Schwager book; it's the closest parallel to your hoped-for outcome.