Comments on: Why hedge funds fail http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/ Tue, 06 Jan 2009 15:24:37 +0000 http://wordpress.org/?v=2.7 hourly 1 By: The Trading Digest » Blog Archive » The Best of The Trading Digest http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/comment-page-1/#comment-25531 The Trading Digest » Blog Archive » The Best of The Trading Digest Wed, 31 Dec 2008 01:24:49 +0000 http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/#comment-25531 [...] a dandy from August of 2007 entitled “Why hedge funds fail“.  An appropriate topic for this [...] [...] a dandy from August of 2007 entitled “Why hedge funds fail“.  An appropriate topic for this [...]

]]> By: Hedge Fund Blog Man http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/comment-page-1/#comment-22854 Hedge Fund Blog Man Thu, 13 Nov 2008 01:47:48 +0000 http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/#comment-22854 The reason for hedge fund failures goes beyond the usual suspects of hedge funds taking on undue risk because of their compensation structure and high leverage. The most simple reason is that there are more than 5000 hedge funds in the US. The fact that less than 1% have failed this year is not that difficult to believe. If you gave a hundred day traders a certain amount of money and told them to go for high returns, a lot more than one of them would be bankrupt by the end of the year. For more info on hedge fund failures see: http://hedgefundblogman.blogspot.com/search/label/hedge%20fund%20closings The reason for hedge fund failures goes beyond the usual suspects of hedge funds taking on undue risk because of their compensation structure and high leverage. The most simple reason is that there are more than 5000 hedge funds in the US. The fact that less than 1% have failed this year is not that difficult to believe. If you gave a hundred day traders a certain amount of money and told them to go for high returns, a lot more than one of them would be bankrupt by the end of the year.
For more info on hedge fund failures see:
http://hedgefundblogman.blogspot.com/search/label/hedge%20fund%20closings

]]> By: Richards Hedge Funds Blog http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/comment-page-1/#comment-13101 Richards Hedge Funds Blog Sun, 18 May 2008 00:49:52 +0000 http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/#comment-13101 Interesting article but I think what is not often discussed is the path to become a $1B hedge fund...most hedge funds are $30M-$300M in size and make much less off of just the management fees, yes they still make a lot but the math is much different. You could probably dedicated a whole blog to the risks different hedge fund managers take on within different strategy segments of the hedge fund industry..anyways good post. Thanks for this. - Richard http://richard-wilson.blogspot.com Interesting article but I think what is not often discussed is the path to become a $1B hedge fund…most hedge funds are $30M-$300M in size and make much less off of just the management fees, yes they still make a lot but the math is much different. You could probably dedicated a whole blog to the risks different hedge fund managers take on within different strategy segments of the hedge fund industry..anyways good post. Thanks for this.

- Richard
http://richard-wilson.blogspot.com

]]> By: The Trading Digest » Blog Archive » Hedgefunds are risk averse? http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/comment-page-1/#comment-7319 The Trading Digest » Blog Archive » Hedgefunds are risk averse? Tue, 18 Dec 2007 16:28:10 +0000 http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/#comment-7319 [...] a previous post of mine, I talked about how the compensation structure of the average hedge fund could lead to unnecessary [...] [...] a previous post of mine, I talked about how the compensation structure of the average hedge fund could lead to unnecessary [...]

]]> By: hedge funds http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/comment-page-1/#comment-3212 hedge funds Wed, 19 Sep 2007 07:18:38 +0000 http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/#comment-3212 Thanks for sharing this article. I hope hedgefund will soon be properly regulated. Thanks for sharing this article. I hope hedgefund will soon be properly regulated.

]]> By: PermabearPete http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/comment-page-1/#comment-2432 PermabearPete Fri, 03 Aug 2007 23:16:20 +0000 http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/#comment-2432 Great read about Dave's true color and amateurish writing skills coupled with a long position......Ouch... "The Glorious Vindication of Timothy Knight I'm going to do a lot of charts later. But I'd just like to twist the knife a bit on the bulls while I have the opportunity. Writing a blog that actually has an opinion is tough. Writing a blog whose opinion runs contrary to a worldwide manipulation of financial markets is enough tougher. Because the sheep love to go along for the ride. A guy named Dave Johnson has a (very minor) blog where there was a chat room. On July 16th, there was this snippet, when someone asked him about me: dayvejohnson: yes but i'll need specific calls each day dayvejohnson: dim tim is just an idiot dayvejohnson: he writes technical analysis software dayvejohnson: a cant figure out how to use it? In case you are wondering, I have produced a chart of the Dow 30 with an arrow highlighting the precise point where the above slander was written." Great read about Dave’s true color and amateurish writing skills coupled with a long position……Ouch…

“The Glorious Vindication of Timothy Knight

I’m going to do a lot of charts later. But I’d just like to twist the knife a bit on the bulls while I have the opportunity.

Writing a blog that actually has an opinion is tough. Writing a blog whose opinion runs contrary to a worldwide manipulation of financial markets is enough tougher. Because the sheep love to go along for the ride.

A guy named Dave Johnson has a (very minor) blog where there was a chat room. On July 16th, there was this snippet, when someone asked him about me:

dayvejohnson: yes but i’ll need specific calls each day
dayvejohnson: dim tim is just an idiot
dayvejohnson: he writes technical analysis software
dayvejohnson: a cant figure out how to use it?

In case you are wondering, I have produced a chart of the Dow 30 with an arrow highlighting the precise point where the above slander was written.”

]]> By: Good to Go Pile . . . « Trading for the Masses http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/comment-page-1/#comment-2401 Good to Go Pile . . . « Trading for the Masses Thu, 02 Aug 2007 18:53:50 +0000 http://thetradingdigest.com/blog/2007/08/01/why-hedge-funds-fail/#comment-2401 [...] only problem is you need the $1billion for this scenario to be potentially [...] [...] only problem is you need the $1billion for this scenario to be potentially [...]

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