Traders of funds vs Investors of funds

[hefoba]

Hi,

I would like to start a thread where we can discuss the different drivers of Fund managers and Investors.

As fund manager, you want to earn "fees".
- Some fund managers earn fees and invest in their own funds. ( Skin in the game ). One example of that Jim Simons. ( Now you can not buy in his main fund as he push out all his investors )
- Some fund managers push hard to earn a lot of fees. Those funds can go very well but have also some bumps ( You can look at BIG SHORT film to understand the concept )

As an investor you want to get a good return on your capital
- Some investors buy on dips and try to get the quick move up ( Some do that on Tesla )
- Some investors jump on some stocks or funds and ride with it ( Amazon , Berkshire Hathaway )

So what is your investment style? How are you as "fund manager" if you are one?

 

[tomorton]

I have made three significant investments in life with my available capital -
a pension scheme
a house
equity shares

I started making pension payments at 18, as soon as I got a job. I bought a house at 27 or 28, which was already a bit late. I did not invest in shares until 42 or 43 which was definitely very late. Should have done all 3 before 25 and then add to one or other every year.

The late start in investing meant I quickly increased my returns per year by moving into trading. I now trade daily but have no stock market investments.

 

[1nvest]

A thread that focuses on the longer term...love it
I manage my own pension. I consolidated all of my workplace pensions which i have/still accumulate over the years and use a combination of asset allocation and market timing. I now do better than my workplace pensions.
I now "manage" (although that is a loose term) a few friends pensions. when to be in equity, when not
I'd love to build that side up with fees. right now its all based on a friendship basis.

as for my style, its momentum investing which still continues to work and im able to manage the risk with the right correlation of assets. Equity, Bonds, Gold etc

 

[hefoba]

I now "manage" (although that is a loose term) a few friends pensions. when to be in equity, when not
I'd love to build that side up with fees. right now its all based on a friendship basis.

Problem with managing friends money is when a problem occurs how to handle it.
Risk is you lose money and some friends.

I manage also some friends money. Ask for very low fees.

 

[1nvest]

Problem with managing friends money is when a problem occurs how to handle it.
Risk is you lose money and some friends.

I manage also some friends money. Ask for very low fees.

I know, i get around that by only investing in the same funds/ETFs that i do. It makes me accountable, and should anyone complain (which so far they haven't) I dont take a defensive stance by trying to justify the investment, it becomes one of compassion. of understanding. really helps me

 

[HFformation]

Hi,

I would like to start a thread where we can discuss the different drivers of Fund managers and Investors.

As fund manager, you want to earn "fees".
- Some fund managers earn fees and invest in their own funds. ( Skin in the game ). One example of that Jim Simons. ( Now you can not buy in his main fund as he push out all his investors )
- Some fund managers push hard to earn a lot of fees. Those funds can go very well but have also some bumps ( You can look at BIG SHORT film to understand the concept )

As an investor you want to get a good return on your capital
- Some investors buy on dips and try to get the quick move up ( Some do that on Tesla )
- Some investors jump on some stocks or funds and ride with it ( Amazon , Berkshire Hathaway )

So what is your investment style? How are you as "fund manager" if you are one?

The traditional model in investment management specifically in equity hedge funds used to be the 2/20 model.
Wherein, A fund manager used to charge a 2% management fee annually on the AUM of the fund.
And 20% performance fee anually above high watermark. But now it's more common to see 1% and 15% as there is a lot competition from Index funds and ETF's and the general performance of the hedge funds is not the same as it used to be in it's heydays before 2008.
Now if an investors approachs a new fund they usually expect them to offer much more favourable terms for seeding the fund.