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They pretty much always outperform benchmarks in bear markets. Not the best way to go when times are bullish
Errr, if I remember correctly, most hedge funds lag the S&P 500 after fees are taken into account. The ones that are consistently beating the market are closed to new investors. Hedge funds that consistently beat the market that come to mind are Farallon, Renaissance Technologies, DE Shaw, and Bridgewater.
To the OP, I highly suggest you start networking with finance professionals and look for a new job. If you can, I suggest moving to the sell side such as Research or Investment Banking or S&T to build some hard technical skills such as financial modeling since your opportunities are going to be pretty limited working for a small hedge fund of that size. Also, I don't mean any offense by this but the way you describe your hedge fund it seems to me to be just day trading for some investor who gave your boss 5 million dollars.
Errr, if I remember correctly, most hedge funds lag the S&P 500 after fees are taken into account. The ones that are consistently beating the market are closed to new investors. Hedge funds that consistently beat the market that come to mind are Farallon, Renaissance Technologies, DE Shaw, and Bridgewater.
I was generalizing somewhat. There are many types of funds with very different goals, but on average at a macro level what I said holds. There are many exceptions.
Quote:
Originally Posted by cancerous
Thanks for that HNSQ, that really allayed some of my anxiety... I really didn't know much about how the industry works, and was afraid that I was just being taken. but it sounds like it is common practice from what you describe.
I just want to be clear. What I said is true, but you do need to trust the guy. There are many people who promise deals like that, try something very risky, and when it doesn't work out they move to another fund and never pay out on their promises. Trust in how honest your boss is would make this decision for me. Also, I know you know this, but since $5M is such a small number, there is a decent chance the fund might not be around in a year or two. It pays to be cynical in the financial industry.
you can work in a third world country and live it up in a super apartment, with all the sex that you want with the hottest girls, nicest home cooked meals, etc. at that income level. living in cali. with that income is a pathetic joke. you are at the poverty level for that state.
you can work in a third world country and live it up in a super apartment, with all the sex that you want with the hottest girls, nicest home cooked meals, etc. at that income level. living in cali. with that income is a pathetic joke. you are at the poverty level for that state.
so funny that you mention that because that is what I would do. Plus I wouldnt have to pay US taxes I believe.
The only reason why I have not done that yet, is because like I said, i'm also pursuing a career in music which would keep me in the states obviously, and particularly in California (Los Angeles)
So i'm an analyst for a small hedge fund.... 5 million dollars. I'm paid 36k a year (my paycheck is 3k a month). They said they would draw up a contract for me so that I get around 4% of the profits on the 5 mil, but that was Sunday, and I havn't gotten anything yet. I also do not get any benefits, only a 3k check.
I've never gotten a raise, it's been 2 years. I'm paid as a contractor.
I'm thinking about looking for a new job... I mean at 3k a month, couldn't I just wait tables and make the same amount?
Thanks.
The only reason I still have this job is because I get to work remotely, I could technically travel the world and still get this 3k paycheck... but I havn't taken advantage of that yet because I'm in California trying to become a music producer. It's just been extremely stressful lately trying to figure out my life lately.
I made more than 3K a month waiting on tables and this was ten years ago, just saying.
so funny that you mention that because that is what I would do. Plus I wouldnt have to pay US taxes I believe.
The only reason why I have not done that yet, is because like I said, i'm also pursuing a career in music which would keep me in the states obviously, and particularly in California (Los Angeles)
You may want to read the "4 Hour Work Week".. in fact, it's probably easier for you to apply the ideas in that book (if it describes a type of lifestyle you'd want) since you don't need to go through their steps for negotiating a remote work agreement with your employer.
You can definitely move somewhere cheaper and even start a business while working to pay the bills. Once your business takes off and you automate it, you can quit your job, free up some time, and going into Music.
he has upped my salary from 36k a year to 48k a year, but he has expensed it as part of the "bonus".
Employee will be eligible to share in trading profits paid to Y by X. Employee shall receive a $4000.00 monthly draw which will accumulate as an
expense against the year end “Special Bonus.” The payment is not a loan. Employee will be
entitled up to twenty (20) percent of total bonus compensation paid to Y
by X. Employee shall receive a monthly trading statement from Employer. Payment shall be calculated based on total profitability at December 1, 2013, and each December
1 thereafter. Fifty (50) percent of the twenty (20) percent shall be paid to Employee within Sixty
(60) days of December 1. Fifty (50) percent of the bonus up to a maximum of $250,000.00 shall be part of the “holdback” and vest over the following year.
is this fair? The language "up to twenty (20 percent" seems weird.
Finance and the finance industry is a dying industry. Get out while you can.
This is one of the more ridiculous generalizations I've come across in recent times.
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