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> Hege fund clients are almost all high net worth individuals who are very capable of making their own financial decisions This is just blatantly false. The ma

by mjfl 2y ago

> Hege fund clients are almost all high net worth individuals who are very capable of making their own financial decisions This is just blatantly false. The majority of clients are large institutions. FYI I used to work for one.

chollida1 2y ago
> The majority of clients are large institutions. Well atleast we got you to move the goal posts from pension funds to large institutions but again think about the average hedge fund. The average hedge fund is 3 people and about $25M in money. What kind of institutional money do you think they'll raise? That's right, about zero and their capital will be their own and friends/ family and one or two anchor clients. Again with thousands of hedge funds and very few pension funds how could the majority of clients be pensions? Your assertion doesn't seem to pass a quick sanity test:)
- throwup238 2y ago
  They didn't move the goalposts. They said (originally): > the majority of their clients are large pension funds, endowments, sovreign wealth funds, and government managers You said: > The vast majority of hedge fund clients are high net worth individuals "large pension funds, endowments, sovreign wealth funds, and government managers" are not high net worth individuals, by definition. You're just talking past each other (or you stopped reading after the first item of the list).
- tingletech 2y ago
  I’m pretty sure my pension has holdings in around 100 hedge funds — but it has more allocated to private equity and real estate. The endowment has more in hedge funds than the pension iiuc, but in basically the same funds. The investment office also announced last year that it is going to divest from hedge funds and re-allocate that to private credit. The chief investment officer said the hedge funds didn’t proved any hedge in 2000, 2008, or 2020.
- em500 2y ago
  > Again with thousands of hedge funds and very few pension funds how could the majority of clients be pensions? The US alone already has around 5000 defined benefits pension funds. (The smaller ones probably invest via fund-of-funds, rather than directly as a LP.)

by mjfl 2y ago

chollida1 2y ago

> The majority of clients are large institutions. Well atleast we got you to move the goal posts from pension funds to large institutions but again think about the average hedge fund. The average hedge fund is 3 people and about $25M in money. What kind of institutional money do you think they'll raise? That's right, about zero and their capital will be their own and friends/ family and one or two anchor clients. Again with thousands of hedge funds and very few pension funds how could the majority of clients be pensions? Your assertion doesn't seem to pass a quick sanity test:)

throwup238 2y ago
They didn't move the goalposts. They said (originally): > the majority of their clients are large pension funds, endowments, sovreign wealth funds, and government managers You said: > The vast majority of hedge fund clients are high net worth individuals "large pension funds, endowments, sovreign wealth funds, and government managers" are not high net worth individuals, by definition. You're just talking past each other (or you stopped reading after the first item of the list).
tingletech 2y ago
I’m pretty sure my pension has holdings in around 100 hedge funds — but it has more allocated to private equity and real estate. The endowment has more in hedge funds than the pension iiuc, but in basically the same funds. The investment office also announced last year that it is going to divest from hedge funds and re-allocate that to private credit. The chief investment officer said the hedge funds didn’t proved any hedge in 2000, 2008, or 2020.
em500 2y ago
> Again with thousands of hedge funds and very few pension funds how could the majority of clients be pensions? The US alone already has around 5000 defined benefits pension funds. (The smaller ones probably invest via fund-of-funds, rather than directly as a LP.)