| Topic Name: |
Hedge Fund-Dot coms of the 21st Century |
| Message Name: |
success is possible |
| Date Posted: |
01/28/2002 |
| In Reply To: |
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. |
| Message: |
I have some good friends who are analysts at hedge funds and they are very good at what they do. However, my point is this: the majority of people starting a hedge fund will fail for two reasons. The first being they will not raise that much capital, this will greatly diminsih what they hoped the upside would be. The second and more pertinent reason most funds will fail is that the majority of hedge fund managers are not as smart as they think they are and when they don't produce returns to match the fees they charge, the few investors they have will begin to pull out.
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