Ask A Hedge Fund Fraud

[gold st capital]

Regarding the diamond situation, first off wow, keeping a secret like that for 30 years is pretty brutal. But yet again, I'd be naive to beleive other governments don't do the same.
Secondly I don't and well probably nobody really has any exact info on the quality of diamonds, but it can show potential, for example the expenses of russian industrial companies, which need diamonds for their tasks may be able to reduce costs, raising profits...
Great article on the dollar Gold St Capitol.
And at the end of the day it just wouldn't make sense for governements to let the most popular currency sink.

Thank man! appreciate your approval.

 

[ayodude]

OK. 

Be completely honest (if you can) or as forthright with your knowledge as you can be with me.

What will happen with this recent announcement? 

http://www.csmonitor.com/World/Glob...als-shiny-state-secret-It-s-awash-in-diamonds

 Why did you even bring that in here smh.

 

[slicknick951]

Question for anyone who has insight in the topic really

Do you think a hedge fund would work at a smaller scale for everyday working people who might want to invest but don't have the 100k?

If they do exist excuse my ignorance. And great thread and post i have been following and will continue to do so.

 

[lazyj10]

No, because that's essentially a mutual fund.

You need to have capital minimums in order to allow for the GP or Investment Manager to achieve their investing strategy. People throwing in $10,000 versus $100,000 wouldn't benefit the GP because they're also trying to keep the LP base (i.e. the number of investors in the vehicle) below a certain # threshhold for a variety of reasons.

That's not to say Fund's won't accept non-accredited folks with capital less than what they normally accept, it's just not usually in their benefit to.

 

[bruce negro]

Hey Gold St Capital, thanks for the thread.

In your opinion, what are the pros and cons of going the hedge fund route vs the private equity route, as both are highly-sought IB exit opps? Thanks

 

[acemaster193]

Would you be willing to start up a Mutual Fund?

 

[lazyj10]

There's less independence (i.e. more restriction) and more admin (and cost) related to Mutual Funds than a hedge fund...wouldn't think it makes financial sensse for someone to go from Hedge to Mutual.

 

[big meech]

Gold St

I appreciate your perspective on the dollar collapse it definitely made alot of sense never looked at it that way

 

[acemaster193]

Got it

 

[slicknick951]

No, because that's essentially a mutual fund.
You need to have capital minimums in order to allow for the GP or Investment Manager to achieve their investing strategy. People throwing in $10,000 versus $100,000 wouldn't benefit the GP because they're also trying to keep the LP base (i.e. the number of investors in the vehicle) below a certain # threshhold for a variety of reasons.
That's not to say Fund's won't accept non-accredited folks with capital less than what they normally accept, it's just not usually in their benefit to.

thanks for the reply but for the bold area

If everyone was at say 10k wouldn't it be the same as 100k just smaller dollar gains but the percentages would be the same. So 100 people between 10k and 20k. Instead of 100 people between 100k and up. I understand the fact that an investment strategy that is used by a traditional hedge fund would not work, but couldn't another be implemented to work in this case?

Sorry for the noob questions just thoughts running though my head and i figured id bounce them off you guys.

 

[champcruthik]

Gold St Capital: Just noticed your blog post in direct relation to my request. Thank you for doing that. Will be reading through it tonight.

 

[lazyj10]

thanks for the reply but for the bold area
If everyone was at say 10k wouldn't it be the same as 100k just smaller dollar gains but the percentages would be the same. So 100 people between 10k and 20k. Instead of 100 people between 100k and up. I understand the fact that an investment strategy that is used by a traditional hedge fund would not work, but couldn't another be implemented to work in this case?
Sorry for the noob questions just thoughts running though my head and i figured id bounce them off you guys.

The key is the benefit in the fund structure. Depends on the state, but certain exemptions from regisrations limit the total number of LPs you can have or the amount non-accredited LPs.

Typically, in CA at least, you can't charge a performance fee (i.e 20%) on a non-accredited investor. Therefore, the GP is taking $10k instead of their $100-$1m minimum, which not only hurts them financially but also hurts the buying power of the fund.

 

[gold st capital]

Question for anyone who has insight in the topic really
Do you think a hedge fund would work at a smaller scale for everyday working people who might want to invest but don't have the 100k?
If they do exist excuse my ignorance. And great thread and post i have been following and will continue to do so.

LayzJ10 Answered this perfectly.

I will say this, there are many hedge funds that take small amounts from smaller scale people. The problem you will be hard pressed to find the hedge fund as they do not advertise. When the SEC decides what the guidelines will be on the Jobs Act, you will see all types of advertising for funds that require smaller capital investment I am sure.

 

[gold st capital]

Hey Gold St Capital, thanks for the thread.
In your opinion, what are the pros and cons of going the hedge fund route vs the private equity route, as both are highly-sought IB exit opps? Thanks

Private equity I think is more suitable for investment bankers, as the model tends to deal with structured deals that are long term.

Pro's

• you get a lot of exposure to in inner workings of companies
• you work on pitch books that get the deals done that you usually hear on the news wire
• You will reach a wide network of industry professionals
• There is more money in the bonus pool of private equity of the assets the company owns and has turned around to profitability go public.
• you get time to develop your skills in private equity
• working for more established companies

Cons

• Long hours
• not being cut into the large executive bonus pool
• MBA likely needed
• Internship hard to get
• Work can be dull
• If the economy is bad deals can be slow, meaning likely no bonus

Hedge Funds

Pros

• You can get in as a trainee depending on the fund.
• Primary requirement is relationships, ability to raise money and trading ability
• Access to an extensive network of traders via bloomberg and other trading wires (this is super important to getting jobs from my experience)
• Can experience fast growth

Cons

• Money you make comes slower, especially if you face redemption's
• You can lose your job easily
• you may hate the monotony (buy, sell, get clients, repeat)
• Its Hard to move from one fund job to another due to the fact that your expertise will likely not match another fund's needs.

 

[gold st capital]

Would you be willing to start up a Mutual Fund?

No!!!!!! way to much regulation for my taste. I like my life simple, lol the more paper work you file, the more liability you potentially face.

 

[ricky409]

Private equity I think is more suitable for investment bankers, as the model tends to deal with structured deals that are long term.

Pro's

• you get a lot of exposure to in inner workings of companies
• you work on pitch books that get the deals done that you usually hear on the news wire
• You will reach a wide network of industry professionals
• There is more money in the bonus pool of private equity of the assets the company owns and has turned around to profitability go public.
• you get time to develop your skills in private equity
• working for more established companies

Cons

• Long hours
• not being cut into the large executive bonus pool
• MBA likely needed
• Internship hard to get
• Work can be dull
• If the economy is bad deals can be slow, meaning likely no bonus

Hedge Funds

Pros

• You can get in as a trainee depending on the fund.
• Primary requirement is relationships, ability to raise money and trading ability
• Access to an extensive network of traders via bloomberg and other trading wires (this is super important to getting jobs from my experience)
• Can experience fast growth

Cons

• Money you make comes slower, especially if you face redemption's
• You can lose your job easily
• you may hate the monotony (buy, sell, get clients, repeat)
• Its Hard to move from one fund job to another due to the fact that your expertise will likely not match another fund's needs.

wold it be better to go into investment banking first before making a decision on which route to go with?

 

[gold st capital]

thanks for the reply but for the bold area
If everyone was at say 10k wouldn't it be the same as 100k just smaller dollar gains but the percentages would be the same. So 100 people between 10k and 20k. Instead of 100 people between 100k and up. I understand the fact that an investment strategy that is used by a traditional hedge fund would not work, but couldn't another be implemented to work in this case?
Sorry for the noob questions just thoughts running though my head and i figured id bounce them off you guys.

This can be done with New York registered funds; you will just be hard pressed to find a fund that will talk about it.

 

[gold st capital]

wold it be better to go into investment banking first before making a decision on which route to go with?

It would be better to just know what you want to do. meaning how much you want to make, how fast, what type of job security etc.

dont just jump into IB and think it will be all good, really think about what you are there for and if your interest in this industry will last. Taking the iB route takes a lot of commitment, the investment industry as a whole is a career not a job. So give it serious thought.

If you need help figuring it out email me [email protected]

 

[lazyj10]

Here's a question for you, Ricky. What exactly do you want to do?

 

[gold st capital]

Gold St Capital: Just noticed your blog post in direct relation to my request. Thank you for doing that. Will be reading through it tonight.

Yeah check it out, I will start posting more stuff on the Blog and if i can get approval i will give a trading idea from entrance point to exit point next week.

 

[gold st capital]

New blog post, why the JOBS act will make you rich, if you're smart. check it out.

http://goldstcapitalblog.wordpress.com/

 

[finnns2003]

New blog post, why the JOBS act will make you rich, if you're smart. check it out.

http://goldstcapitalblog.wordpress.com/

Interesting. I wonder how many will hedge funds be popping up now.

 

[the hater boxden]

Yo. Can you pay my tuition and i will return 20% of my profits of whatever job I get after i graduate???

I'm too poor to pay for school yet the government thinks im too rich to receive financial aid.

 

[lil black jean jacket]

Yo. Can you pay my tuition and i will return 20% of my profits of whatever job I get after i graduate???

I'm too poor to pay for school yet the government thinks im too rich to receive financial aid.

no. you gave it to someone else

 

[lil black jean jacket]