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Other thing: Their entire revenue stream is based on percent fees from current assets. During market downturns, total assets drop, which means their revenue dro
by 013a 9y ago
Other thing: Their entire revenue stream is based on percent fees from current assets. During market downturns, total assets drop, which means their revenue drops. Not only are more of their customers likely to withdraw funds during a downturn, but the companies themselves have never existed during a downturn.
- module0000 9y agoThe hope is that the fund you are invested in reverses their long positions to short positions, and those assets keep on increasing. I wouldn't trust any money manager that wasn't ready to change their position to match the immediate market at the first sign it was profitable to do so. You don't want a "wait and see" money manager, you want a shark.
- seanp2k2 9y agoThe problem is that good ones who are actually good charge such high fees that it eats up all the difference they make, and also end up being bad after a while anyway. Bad ones do the same thing but lose more, faster. In a gold rush, sell shovels.
- kgwgk 9y agoWhat kind of funds do you invest in? Most people invest in long-only funds.
- module0000 9y agoThe only fund I trust to manage any of my assets currently is FSI(futures strategies inc). It's a private fund that accepts outsiders if a member introduces them and they meet capital requirements. They are very quick at reversing their position, sometimes dozens of times per day. Fees are a flat 2% of managed capital, taken quarterly. I've been with them for the better part of a year, and so far(knock on wood?) there have been 0 losing weeks since I joined. That said, the majority of my capital is traded by me. It's all in the futures market, specifically US debt instruments.
- kgwgk 9y agoGood for you. Anyway the discussion here is about investing, not trading.
- metalliqaz 9y ago2% quarterly? How is that ever going to be the market long term?
- kgwgk 9y agoI assume that's 2% annual (i.e. 0.5% per quarter). And a fund changing its exposure dozens of times per day is not in the business of beating the market.
- adambyrtek 9y ago"Better part of a year" is not a very long track record.