Why have I never seen any offer of money manager here?

Discussion in 'Professional Trading' started by Peblo, Jan 7, 2020.

  1. Peblo

    Peblo Guest

    I was wondering - why have I never seen a thread on ET started by a CTA or a trader exempt from CTA registration offering his account management service to prospective clients? It is not prohibited by NFA rules as far as I know.
     
  2.  
  3. You cannot "hold yourself out to the public" as a money manager unless you are registered with the revenooers. (Friends and family, limited amount of assets under management exempted.)
     
  4. Peblo

    Peblo Guest

    You can post a message here quoting a relevant exemption, like up to 15 investors etc. Can you not?

    That is if you are NOT registered.

    What about registered CTAs? Can they also not post here?
     
    Last edited by a moderator: Jan 7, 2020
  5. Banjo

    Banjo


  6. Are you asking because you are desperately looking for a money manager or perhaps one who wishes to advertise/announce and just checking for any roadblocks?
     
  7. deaddog

    deaddog

    The problem with money managers is that they want to be paid even when they lose money.
     
    VPhantom, d08 and damon_achey like this.
  8. Sig

    Sig

    You go to a bank or buy treasuries if you want a risk free return. And you get the risk free rate or lower. You want a higher return, you incur a higher risk, that's the fundamental and accepted precept of modern portfolio theory.
    A wealth manager's job isn't to "make money" for you. It's to help you set up a portfolio with the appropriate level of risk and therefore return for your individual situation while ensuring your portfolio is diversified enough to eliminate idiosyncratic risk. That's probably of little value to most everyone here. It's of immense value to the rest of the population that, while maybe brilliant in their own field don't have the time or interest in learning modern portfolio theory. It's as absurd to expect them to offer that service with payment only upon upside as it is to only pay a doctor if any procedure they perform completely heals you. I think you're conflating wealth management with hedge fund management, two very different worlds.
     
  9. I could be mistaken, but I believe the "15 investors" is limited to friends and family.... people you already know and have a relationship with... not public "strangers".

    CTAs could post, but what would they post.... "Let me manage your money"? They almost certainly couldn't entice you with their "performance". The revenooers have strict rules about "advertising performance". That is, (1) must be 100% accurate including fees, and (2) must include ALL of your track record. The good and the bad... which BTW is likely why you see no public advertising of performance from any kind of registered money manager. (And if you have a break in performance... say you didn't trade because you were sick or for any other reason, all of the track record before the break is lost and gone forever... you start over.) Bottom Line... almost impossible to advertise performance without violating revenooer regs, so nobody does. (I know of this. I got an SEC audit one time because SOMEBODY ELSE reported my performance in a local business journal. It was something like, "Local Mutual Fund Timer Kicks Ass.")
     
    Last edited: Jan 7, 2020
  10. MattZ

    MattZ Sponsor

    Outside all the rules and regulations, it is hard to advertise to a crowd that wants to have total control of their funds and have their own idea of what they want to earn.
     
    #10     Jan 7, 2020