Absolutely no one here truly understands simple mathematics, I am expert on Affluent and Accredited which is why I can note trades before they happen, let's say you can generate 200%pa which you can't and never will, I can but that's not relevant for this, if someone offers you $20,000 at 200% is $40,000 profits. On a 30% profit fee you generate $12,000 per year from all the grief that these people will give you, no one with the ability to 'prove' their returns cares about these rounding error numbers, if you generate 50%pa which is still beyond anyone here that fee goes down to $3,000 per year. The only way this process ever works below Accredited is that someone deposits a marginal capital amount to trade/invest on a timeline plan, they prove that amount via profits, then via that plan the capital amount is increased and profits are proven again, and I can tell you exactly what happens. Anyone here will want to start with $1,000s, then $10,000s and that will be the limit, I reluctantly worked with $20,000 for an entity that wanted this done with a plan to increase capital 10x over the next 3/6/12mths, I generated legendary returns, when it came time to deposit the 2.5x/5x/10x capital which is where I actually started to make anything resembling a profit for myself, below mid-tier was essentially a loss, they fused. There was a comment above about the few going green, those numbers are irrelevant, if you have a very calm stable life you can benchmark to bonds, most people should (but never do) benchmark to inflation * 2, people with a more active life should benchmark to S&P, that is green and that is alpha, you can say green is above zero but all it means to anyone in the know is - you failed. This is the problem with these low levels of capital, people had to work so hard for it that they truly believe they can run people around in circles and make them jump through hoops, yet left to their own they would be very lucky to hit double digits percentages, which is why today made another 20% on a massively leveraged Forex trade, you don't have to deal with the catastrophe called Retail Investors!
You trade FX with some sht bucket shop so you are what you’re railing against. lol you traded $20K OPM with a promise of 10x down the road. Legendary.
No one said where the leverage was coming from, $20k OPM with a promise of 10x down the road, not quite because there was $10mn of money onboarding which the fund owner was going to blow, so walked away instead of being a liable party, you know those old things everyone forgot, ethics and professionalism. Anyway let's make it a bit simpler, anyone who can prove their profits will make 10x more trading their own accounts than managing third party money, therefore any fund manager not doing it on a pure Alpha basis is there for fees. I do enjoy these comments, happily proves what good choices I made generating my own Alpha with benchmark to UHNW instead of benchmark to Retail Mutual Funds and Inflation
My mis-understanding, 3-5yr track is obviously the benchmark to use for investors going forward, fundseeder does look interesting especially backed by Schwager, investors today have nothing to offer successful fund managers that can produce Alpha, which is why Aperture is focused on institutional and many funds are closing or going in-house, I can see now why everyone has moved from Denial to Anger, should be a funny few years ahead.
Perhaps everyone can go back to the 3yr track record basis as some people made some good comments about that, actually there is one perfect way for any fund manager to prove their track record which is irrefutable, they turn down investor requests for fund management, the professional choice of many I know. Fortunately with Corona and Nutrition and Lifestyle everyone is so blank today (because they don't have capital and knowledge to solve these little things) that even that little annoyance no longer happens, I must say it's very peaceful, just a word of warning though, track records can come to mean very little very quickly without volatility smoothing, the brave new world without QE.
As I'm reading this thread, my mind goes to... Just use Bernie Madoff's CPA... Although Madoff's wealth management business ultimately grew into a multibillion-dollar operation, none of the major derivatives firms traded with him because they did not believe his numbers were real. None of the major Wall Street firms invested with him, and several high-ranking executives at those firms suspected his operations and claims were not legitimate.[87] Others contended it was inconceivable that the growing volume of Madoff's accounts could be competently and legitimately serviced by his documented accounting/auditing firm, a three-person firm with only one active accountant.[88]