jcountry

This little bird just flew in and squawked "Ponzi scheme!'

I have no idea what he meant... But he seemed pretty agitated.

OpenClimb

The term "Hedge Fund" has become perhaps the most overused (and misused) term in the financial world. As someone already posted the term has specific meaning within the [real] investment world and with the SEC.

If the OP doesn't know the difference, then I wouldn't want to invest with him. If the OP *does* know the difference and is using the term to enhance his marketing plan, then I wouldn't want to invest with him.

As for the actual terms of the offer, 20% of the profits is ridiculously high compensation for a fund manager.

GogglesPisano

My uncle is a Nigerian prince. I'm in for $250,000,000. Can I wire you the money?

SayAlt

I checked and the OP did not mention the word "guarantee" anywhere. You did.


Actually, the rules re: Hedge Funds have been relaxed a great deal, and said funds can now pool investor capital. Think of it much like an ETF.


This is actually not true at all. Unlike equity funds, which are required to hold a certain percentage of all funds invested in the market at any given time (typically 80% of all assets), a Hedge Fund can be managed with FAR greater flexibility. For example, a HF can go "delta neutral" (ie. essentially be "flat" the market...read: neither loses nor gains $$ regardless of stock price movement), or it can go entirely short the market, or long the market. It can also "hedge" it's long and/or short positions in the market with options. In fact, historically Hedge Funds are superior to stock funds precisely because of this flexibility.

Actually, no it isn't. In fact, for the very successful Hedge Funds out there (most of which you've never heard of) it is industry avg. and in some cases lower than what is charged.

Actually, what is more accurate is that most people don't even know what they speak of when it comes to this topic, as my post here readily demonstrates.


To the OP....why a pilot specific fund? I fail to see how, in an investment scenario, pilots have unique investor characteristics that make us a special class of investor.

intrepidcv11

It is staggering that there are still chumps that believe this kind of rubbish. Thankfully funds like CALPERS are seeing the light. Google hedge fund managers vs blindfolded dart throwing monkeys and show all of us proof of this historic outperformance.

SayAlt

Chump? Blind monkey? Yes, you certainly are one. Need proof, eh, and be held by the hand? lol

I'll accept your apology in advance, seeing as how your mouth is full of your over-sized foot.

intrepidcv11

No apology needed. Real suprising that JP Morgan would publish a misleading study. Enjoy that 2/20 model...


Bad Chart: Hedge Funds? Long Term Gains | The Big Picture

SayAlt

One slight problem with your (and Barry Ritholtz's) model....it ASSUMES all managers both grow their funds and hit a wall at year 10. Nevermind this is an assumption with no empirical data to back it up.

Are there Hedge Fund busts? Sure. I've never claimed otherwise. Has this segment of the investment industry swollen in size (and therefore the number of busts)? Sure, I never said otherwise.

As with all investments, one must dig deep, examine all the facts, and make the best choice possible. But there is no questioning that a well run Hedge Fund offers superior returns to an equally well run Equity Fund over the long haul.

My investment portfolio proves it. Sadly, it doesn't seem your's does, so I pity you.

And btw, I'll take the WSJ and JP Morgan over Barry Ritholtz is any time.

Have a nice day.

intrepidcv11

I'm sure your managers will appreciate your misguided devotion this Labor Day weekend in The Hamptons.

SayAlt

I accept your apology. Try to actually know something about what you're trying to talk about next time.