Ask A Hedge Fund Fraud

[djprestige21]

[COLOR=#red]Also what is risk parody?[/COLOR]

 

[acemaster193]

How about if you're not much of a salesman yet interested in the field?

 

[gold st capital]

Who does your audit?
Are you strucutured as a LP or LLC? Master Feeder?
Who is the Fund's council?
You accept both accredited and non-accredited...are you charging performance/incentive to the non's?
Who is your prime or introducing prime?
Who is your Administrator?
State registered?

1. Sandler & Co
2. Structure is LP for the fund, LLC for the management Co, LLC for the Advisory.... no master feeder
3. Sadis Goldberg
4. yes both acrredited and non accredited... Yes incentives to the Non's. This is possible dependent on your state of registration and having your administrator do the extra work.
5. Saxis
6. SS&C
7. NY with blue skys in NJ, NV, MD, FL

 

[gold st capital]

How about if you're not much of a salesman yet interested in the field?

If you do not sell or are not cable of selling, you cannot make the big money. Dont let someone tell you you can just be an analyst and make large sums, someone has to buy the stuff you recommend. Therefore you have to convience another party of the idea. whether its your boss or an institutional client you want to earn big money you will be selling some intangible product or service to someone else.

Do IT or admin work such as operations

 

[nocomment6]

I'm studying economics, but I'm pretty sure I want to move on to asset management, brokering in the future.

 

[lazyj10]

1. Sandler & Co
2. Structure is LP for the fund, LLC for the management Co, LLC for the Advisory.... no master feeder
3. Sadis Goldberg
4. yes both acrredited and non accredited... Yes incentives to the Non's. This is possible dependent on your state of registration and having your administrator do the extra work.
5. Saxis
6. SS&C
7. NY with blue skys in NJ, NV, MD, FL

Right, CA varies from NY/NJ. Typically in CA you won't see performance charged to non-accredited. It's not worth the risk/benefit to the GP. A few of my clients use Sadis on the west coast....I've heard of Sandler and SS&C, but they seem to have more of an East Coast presence. We also do some fund side work for Saxis.

You mentioined, I believe, debt instruments as part of your portfilio. You get market maker quotes or do modeling?

Fee structure typical (2/20) or a higher mgmt fee lower incentive for the non accredited? Anything about your fund that isn't "vanilla" in terms of structuring, etc?

 

[ricky409]

If you do not sell or are not cable of selling, you cannot make the big money. Dont let someone tell you you can just be an analyst and make large sums, someone has to buy the stuff you recommend. Therefore you have to convience another party of the idea. whether its your boss or an institutional client you want to earn big money you will be selling some intangible product or service to someone else.

Do IT or admin work such as operations

is selling more crucial.than the analytical side of the occupation.

I've been in commissioned sales all my working life so I know some of the ins and outs ...

I'm just working on the analytical side with my masters and certifications

 

[ricky409]

Lazyj and no comment: what do y'all do currently?

 

[freakydestroyer]

is selling more crucial.than the analytical side of the occupation.
I've been in commissioned sales all my working life so I know some of the ins and outs ...
I'm just working on the analytical side with my masters and certifications

The way he makes it seem like you just need to be a decent trader but be able to pull clients.

 

[gold st capital]

What does this mean?
"I think that the first thing is you should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold."
Ray Dalio said that, how would I describe what a strategic asset allocation mix is 

its just a strategy for a portfolio that requires you to rebalance your risk exposure as things in the future change. It allows you not to be over weight on any one sector or stock. The expected return of the portfolio needs to be determind before you begin this strategy, so you know what to rebalance to.

 

[lazyj10]

Lazyj and no comment: what do y'all do currently?

I'm assurance side of financial services...working with hedge funds and VC funds primarily.

 

[jhawk826]

Interesting thread. I knew a few heirs to hedge funds from when I interned a trading firm when I was in college. To think I turned down an opportunity to get my Series 7 at 19 because I was still largely ignorant to the industry. The things I would tell my younger self.

Sidenote: Going electronic took a lot of money out of people's pockets and overall was a detriment to trading. Also didn't help that the economy plummeted around the time it was implemented.
 

 

[gold st capital]

When you look at charts, which indicators do you use? Which stocks are your usual suspects?

with charts I only use support and resistance using the 200 day moving avg. I look for up and handle formations, head and shoulders and reverse head and shoulders. In essence the canslim method

I dont have usual suspect stocks. I dont fall in love with a stock. The stock i trade very often is apple when it gets to a support resistance channel. I do get a lot of my ideas from investors business daily and then scour the sectors  to see other under valued names I can buy or trade options on.

i rarely deal with speculative stocks. I just trade a lot. usually between 50k to 100k shares a day. most orders are in the 10k lots

 

[gold st capital]

is selling more crucial.than the analytical side of the occupation.
I've been in commissioned sales all my working life so I know some of the ins and outs ...
I'm just working on the analytical side with my masters and certifications

Analytics just show you have an ability to understand what you are reading, this does not mean you can convey it or get others to believe it. What you may believe is right others may deem wrong. This is why some analyst on the street are gods and some no one knows. You need a firm understanding of the 2. On wall street though the salesmen make the most. Even if you are an executive you are one hell of a closer. I can explain it in a long explanation but most on here wont care to read it.

 

[freakydestroyer]

with charts I only use support and resistance using the 200 day moving avg. I look for up and handle formations, head and shoulders and reverse head and shoulders. In essence the canslim method

I dont have usual suspect stocks. I dont fall in love with a stock. The stock i trade very often is apple when it gets to a support resistance channel. I do get a lot of my ideas from investors business daily and then scour the sectors  to see other under valued names I can buy or trade options on.

i rarely deal with speculative stocks. I just trade a lot. usually between 50k to 100k shares a day. most orders are in the 10k lots

On average how long do you hold on to a position?

 

[ricky409]

Analytics just show you have an ability to understand what you are reading, this does not mean you can convey it or get others to believe it. What you may believe is right others may deem wrong. This is why some analyst on the street are gods and some no one knows. You need a firm understanding of the 2. On wall street though the salesmen make the most. Even if you are an executive you are one hell of a closer. I can explain it in a long explanation but most on here wont care to read it.

with all do respect to those that won't read it... eff them.

I'm trying to learn as much as I can famb. I've literally read every word in this thread 3x cuz this is EXACTLY... I STRESS EXACTLY ... what I want to do for a career ...

I have seriously contemplated moving to new York, la, or London when I finish school b/c those or financial hubs ...

Money decisions are made in these places (I think)

But fareal ... let them fingers flow famb... I don't eem care about the spelling errors.

 

[gold st capital]

Also what is risk parody?

its risk parity and its the management of a portfolio based upon risk rather than asset allocation. meaning you invest based on how risky or non risky the investment is but you diversify the risk. This allows you high reward is those risk go well and diversified exposure in case the risk goes bad. you take more risk in a risk parity portfolio and less in an asset allocation portfolio. The Risk Parity Port needs to be more actively managed as you can make a lot or get killed if 7/10 ideas go bad or look amazing if only 2/10 risky ideas go bad.

 

[gold st capital]

On average how long do you hold on to a position?

aprox. 1 week at the most.... most night I close all position by the end of trading. If i really like the position and it has good earnings, PE ration etc...i will keep it for a week or a little longer for it to develop.

 

[freakydestroyer]

aprox. 1 week at the most.... most night I close all position by the end of trading. If i really like the position and it has good earnings, PE ration etc...i will keep it for a week or a little longer for it to develop.

Do you also trade your own indivual account, but perhaps more aggressively?

 

[gold st capital]

Do you also trade your own indivual account, but perhaps more aggressively?

My money in in the fund....I trade it just like everyone else. I dont hold any outside accounts. In my opinion it would be a conflict of interest

 

[gold st capital]

Right, CA varies from NY/NJ. Typically in CA you won't see performance charged to non-accredited. It's not worth the risk/benefit to the GP. A few of my clients use Sadis on the west coast....I've heard of Sandler and SS&C, but they seem to have more of an East Coast presence. We also do some fund side work for Saxis.
You mentioined, I believe, debt instruments as part of your portfilio. You get market maker quotes or do modeling?
Fee structure typical (2/20) or a higher mgmt fee lower incentive for the non accredited? Anything about your fund that isn't "vanilla" in terms of structuring, etc?

I get market maker quotes... I have a bloomberg license. I trade a lot of MBS, Steepeners, Private label Mortgages and inverse CMO's

My fee structure is typical even on non accredited.

nope my fund is vanilla... I will set up a master feeder when my fund gets bigger.

 

[freakydestroyer]

Does race really matter in this biz?

 

[jhawk826]

My money in in the fund....I trade it just like everyone else. I dont hold any outside accounts. In my opinion it would be a conflict of interest

That's what my then boss, Mark Fisher, said in regards to investing with someone. I don't remember the exact percentage, but if it wasn't 70% or more, don't risk your money with them.

 

[lazyj10]

Interesting.

I see more bank debt and CLOs over here. East Coast certainly has a lot of MBS and CMBS funds/activity.

Though my firm isn't servicing you, if you do have any questions or anything that isn't being provided feel free to reach out to me.

 

[nocomment6]

Lazyj and no comment: what do y'all do currently?

I'm still in school studying applied economics, Budapest for now and I plan to apply to Oxford, Cambridge, London or back to my hometown TOronto for an MBA or MS. Haven't decided what I want exactly.
Although I think macroeconomics is what interests me the most.

Question:

where do you get to know new companies to invest in?
I mean the list has no end, but how do you select, where do you find new companies that have potential, but aren't that well known for example.