Not all hedge fund managers are rich. Many are like small businesses that create jobs

[hill2016]

You need a compliance officer, a chief operating officer, a trader, personal assistant, marketing person (often the chief operating officer can double up or this could be outsourced to an external firm) at the very least.

This is before we even talk about the investment team. You probably one at least a couple of analysts from business school or private equity firms. They don't come cheap.

So all in you probably need at least seven or eight people (including the founder) at a bare minimum. The cost of compliance these days is quite high. Break-even AUM could be a few hundred million dollars.

Usually you donKt get much assets until the first three years of good performance, unles you are very well-known with a good track record from a bank (more rare as all the banks have to close their prop trading) or you came from another hedge fund. So you're basically taking a risk for the first three years.

[hill2016]

1. The

Billionaire hedge fund managers you hear so much about, they are generally in their 20 or 30 year mark in their career.

Many would have fallen along the way.

[daleanime]

2. ........

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&ved=0ahUKEwie5_fAhKbKAhXDJR4KHVFkADUQFgg-MAU&url=http%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fhedge-fund-managers-pay-slashed-to-211538-an-hour-2015-05-05&usg=AFQjCNG5UAwAuiCuAQ9p2By3Jo5ODt5liQ&sig2=vpvSw8U8D0yEsx5NAm7JQw

[hill2016]

5. These are guys at the top

Of their careers, after decades in the trenches.

[daleanime]

8. And special tax rates.....

My father retired after 50 years, care to guess how many years he would have had to work to make that one hours salary?

[Kalidurga]

3. Yes but Hillary's sil makes 2 mil a year.

So another pointless thread about deflecting from the 1% who lies about getting rid of public health care. I guess if that is all you got go with it.

[Hassin Bin Sober]

4. I know a few hedge fund people and they are all trust fund babies.

They bank on getting mommy and daddy's friends to invest in their funds.

[hill2016]

6. How big are they

In terms of number of people and assets?

Unless you are at a certain threshold, many institutions (pensions, foundations, endowements) won't look at you.

[Hassin Bin Sober]

9. One I'm intimately familiar with sounds a lot like the example you gave.

But they have six traders. Some IT people. Personal trainers and an in office gym.

The funny thing is, the kid I know who runs this fund has a brother who too all his money and travels the world smoking pot and having fun

The "working" brother hates the lazy brother. But they are both worth $500 million plus.

The dad is a fund manager - his out of wedlock 5 year old has a $70 million dollar trust fund. Dad was 67 ... 70 s now.

[Shrike47]

29. The one I know didn't get squat from anybody. Lived in a youth hostel when he started.

He's doing a little better now, thank God. Well, a whole lot better.

[Hassin Bin Sober]

31. I suppose anyone can call themselves a hedge fund.

There was a story here recently about a kid in his dorm room playing with $50,000 dollars of mommy's money.

I'm talking about serious institutional and high net worth investors.

[opiate69]

7. ...

Marc Mezvinsky Net Worth is $6 Million. Marc Mezvinsky Salary is $2 Million Per Year.

http://www.getnetworth.com/tag/marc-mezvinsky-wikipedia/

A bit outdated.. I'm sure his net worth and income have done well in the intervening years since this was posted though.

[840high]

10. +10 update:

Marc Mezvinsky net worth:
$15 Million
Marc Mezvinsky's Salary
$2 Million Per Year

[opiate69]

23. The Obama economy has been good to someone at least...

(Granted, I know I'm better off than I would have been under Mittens or Grampa McNutter... but I'm certainly not that much better off)

[Truprogressive85]

11. I've come to the conclusion you're a troll or either really out of touch

[Juicy_Bellows]

20. Yep.

I'm still convinced Kaufman lives. They're taking the piss, almost certain of it.

[Deny and Shred]

12. Hedge funds managers are innocent job creators?

The spin is making me dizzy.

The whole point of creating the hedge fund entity was to make a firm free of the reguations on banks/investment banks. Hedge funds, the well-connected ones anyway, are able to use their access to information to make profits. Access to privileged information has equalled profit, not brilliance.

Where did you get 3 years? Many hedge funds were wildly profitable before three years. They were set up specifically to exploit a certain stream of information.

But at least in your mind each hedge fund creates 7 or 8 jobs. Right? All praise the job creators.

Seemingly good for America until you learn their income is shielded or held off-shore. At that point, the benefit to America was what exactly ?

[neverforget]

13. #hedgefundsopoor

[beam me up scottie]

14. !

[hedda_foil]

18. Oh let's get that hashtag trending on Twitter tout suite! #hedgefundsopoor

[fleur-de-lisa]

33. LOL!

[hedda_foil]

15. I take it you're a hedge fund manager,then?

[AgingAmerican]

16. lol

nt

[Douglas Carpenter]

17. a few hundred million? That sounds just like a mom and pop ice cream parlor or my dad's TV repair

Last edited Wed Jan 13, 2016, 04:02 AM - Edit history (1)

shop.

'Break-even AUM could be a few hundred million dollars." " You probably one at least a couple of analysts from business school or private equity firms. They don't come cheap."

Clearly your idea of a small business in not mainstream America's idea of a small business.

[RandySF]

19. I know a fmr fund manager

Who made his fortune, retired and is now a K-8 math teacher.

[cali]

22. And that is the exception

[Betty Karlson]

21. This is astoundingly tone-deaf blabber:

hedgefund managers as a group have been unhinging our economy, but we are supposed to leave them to it because SOME hedge fund managers are "like small business owners"?

Give me a break. Small businesses produce things that contribute to the real economy. Hedge funds just siphon funds away for the financial shadow-economy. No production is involved, not even in those first three years when they take a risk. And by the way: after those three years, they still take risks: just with OUR economy!

[arcane1]

28. That's their job n/t

[mmonk]

24. I'm more concerned with their actions

without public safeguards.

[kath]

25. See Divernan's diary for more details on the ultra-sleazy, criminal Mezvinsky family:

http://www.democraticunderground.com/~Divernan

Very enlightening.


And Chelsea's spouse is a hedge fund OWNER.

[Kentonio]

26. This is almost as funny as when you told us $250,000 was definitely middle class

Because it was barely enough for a housekeeper, nanny and private school fees.

[Douglas Carpenter]

27. I can only wish I suffered those kind of problems

[DemocratSinceBirth]

30. Unless a person is a pimp, a pusher, a professional burglar, et cetera...

Unless a person is a pimp, a pusher, a professional burglar, et cetera it's silly to castigate a person for plying their trade without knowing anything more about them.

[guillaumeb]

32. The 1% thieves already have the corporate media to write this nonsense.

Good to know that I can read the same garbage here.

There should be an "unrecommend button".

[GeorgeGist]

34. Not The Onion?