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Dudes who started this don’t even look like credentialed hedge fund managers. How did they get so big
by greatpostman 4y ago
Dudes who started this don’t even look like credentialed hedge fund managers. How did they get so big
- anonymoushn 4y agoWhat credentials do you believe are required to start and manage a hedge fund?
- Ferrotin 4y agoEspecially considering one of the most famous hedge funds was founded by an MD.
- notahacker 4y agoThe ability to persuade very rich people to give you money, or a lot of money of your own. Expensive suit helps. Cartoons about "the only way is up" a more unconventional route to the same end.
- astrange 4y agoYou don't need anything to start a business claiming to be a hedge fund, but you need a guy with a series 65 license to do investment advising in most US states.
- anonymoushn 4y agoWe're a fund regulated by a government other than the US. Our regulated investment manager (which confusingly is the entity that one would say does "investment advising" in the US) does not have any staff with US-specific licenses. Despite all this, we could trade US equities, if we wanted to trade in markets that are deeply unfair and have fixed costs for data feeds and colocation in the tens of millions of dollars.
- woodruffw 4y agoIt's the oldest story in finance: easy money, hubris, a lack of regulation, and a sense of entitlement ("it's all a scam, so there's nothing wrong being one more scam").
- deleted 4y ago[deleted]
- klodolph 4y agoFunny to talk about credentials. As far as I can tell, the purpose of credentials when hiring hedge fund managers is so that when the hedge fund loses money, you can say, “Look, we did our best, we hired the best people.” Then you can swap in a new set of hedge fund managers with the same credentials and repeat. (Edit: Hedge funds naturally lose money some of the time, and investors naturally get angry when that happens and look for someone to blame, and hiring someone who has good credentials lets you pass the blame, instead of having to explain to your investors that hedge funds just sometimes lose money. I’m not trying to tie this to the discussion about whether hedge funds work or not, just talking about how they operate.)
- jrumbut 4y agoComing soon to the crypto world at this rate.
- kareemsabri 4y agoDo you have any evidence for this theory that credentials are just for show and misdirection? For example hedge funds trying to fall back on the credentials of their employees in the event of failure?
- nowherebeen 4y agoWhy would he/she need evidence? It's an observation which you may disagree with. Asking him/her to provide evidence is just silly. He/she is not here to prove anything to you.
- kareemsabri 4y agoThis comment is silly. It's not an observation, it's an assertion. If it was an observation it would contain evidence. He/she is here to have a discussion, presumably.
- klodolph 4y agoNo, the parent comment is spot-on. The idea that observations “contain evidence” is an idea that I’m unfamiliar with. I’m not sure what point you’re making about observations or assertions, or how the distinction between the terms is germane (not talking about the distinction between the concepts). Asking for evidence is confrontational and a bit gauche. Better to ask someone to elaborate, or ask them what the reasoning is. That’s a good way to continue the discussion because it doesn’t frame the discussion as an argument.
- chrisseaton 4y agoWhat does a credentialed hedge fund manager look like? What do you want, a Patagonia vest?
- deleted 4y ago[deleted]
- deleted 4y ago[deleted]