82,891
edits
Fund of hedge fund: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) (Created page with "{{g}}For the person who wants the exhilarating returns of a proven trading wizard<ref>...whose contrarian directional position may, if she sticks with it u...") |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{g}}For the [[ultimate client|person]] who wants the exhilarating returns of a proven trading wizard<ref>...whose contrarian directional position may, if she sticks with it until the cows come home — currently expected to be just before Herbalife finally collapses amid a chorus of stunned, recrimination-anticipating shrieks of horror.</ref> | {{g}}For the [[ultimate client|person]] who wants the exhilarating returns of a proven trading wizard,<ref>...whose contrarian directional position may, if she sticks with it until the cows come home — currently expected to be just before Herbalife finally collapses amid a chorus of stunned, recrimination-anticipating shrieks of horror.</ref> but does not care for the [[volatility]] of that risk, and so will pay someone else by employing someone, for a modest running fee, to make dampen that [[volatility]] — the very volatility that is so exciting, by the way — by diversifying his investment across a range of funds. | ||
It will not have dawned on such a client that by paying two percent running to each hedge fund and one percent to the fund-of-funds manager, his money must earn three percent per annum before he gets ''anything'' and even then (thanks to the 20% success fee on any net upside of each hedge fund and 10% success fee on any net upside of the fund-of-fund manager) for following a low risk diversified strategy, these market professionals must make fully tree percent return with the [[ultimate client]]’s money before he breaks even, and even then he will only see seventy cents on any dollar his actual money earns. | It will not have dawned on such a client that by paying two percent running to each hedge fund and one percent to the fund-of-funds manager, his money must earn three percent per annum before he gets ''anything'' and even then (thanks to the 20% success fee on any net upside of each hedge fund and 10% success fee on any net upside of the fund-of-fund manager) for following a low risk diversified strategy, these market professionals must make fully tree percent return with the [[ultimate client]]’s money before he breaks even, and even then he will only see seventy cents on any dollar his actual money earns. | ||
Of course, you could always by an index tracker. | |||
{{sa}} | {{sa}} | ||
| Line 7: | Line 9: | ||
*[[Ultimate client]] | *[[Ultimate client]] | ||
*[[Look, I tried]] | *[[Look, I tried]] | ||
{{ref}} | |||