| Topic Name: |
Hedge Fund-Dot coms of the 21st Century |
| Message Name: |
its what you do with it... |
| Date Posted: |
01/28/2002 |
| In Reply To: |
You have never started or run a hedge fund management company. The other two posters have good points. If you start your business and after a couple of years you are still sitting at 10 million AUM, you aren't going to get rich. It takes a lot of staying power to get to the size where it makes sense as a business. Many, many, many people throw in the towel before then, if your believing your own bullshit and sub-par (or a big flameout) don't take you down before then.
The analogy between hedge funds and dot coms has some traction. Just like most dot coms blew up, most hedge funds either blow up, get shut down or wound down. The survivors are few and far between, and the true success stories even less. It is a hard business. Take it from someone who's been there and back. Did I make money at it? Yes, plenty. Did I make as much as I firmly believed I was going to make before I started? Not even close. It barely covered my opportunity cost, at much greater personal sacrifice.
Cheers,
Yabai |
| Message: |
depends on what your average returns are on that 10 mill and what your performance fee is. also how big is your operation, how many people managing. 10 million if you make say 25%, then take 25% performance fee thats 2.5 mill= 625k performance fee. yes you cant get rich off of that, but if you are good word of mouth spreads. Of course nobody sets out with their goals to fail. I will never have failure to be a goal or a possibility, it is my job to keep that in check day by day. With low overhead and a couple managers, I dont see how this can be even remotely similar to a dot.com type of situation. I thank you for your insight, yabai. I am sure it is a bumpy road.. but success is possible.
|
|
