Successful Investor w/Track Record - any advice?

dantes · Post by **dantes** » Wed Dec 12, 2007 11:28 pm

To get a hedge fund kind of job I would say that the fact that you have taken 30K to 300K in itself is not really "enough". I have got a few applications like that through the years and what I would look at is the method behind those gains. Do you trade in a way that would be possible to replicate in a pro environment (can you scale this for one) and are the draw downs ok. If you make 50% a year but you have a 35% draw down ones in a while things look less good.

jungle · Post by **jungle** » Thu Dec 13, 2007 12:37 am

There is already a thread on starting your own fund. Worth a read.

Bachelier is Phrench - who knew? Chew

Saagdiyev · Post by **Saagdiyev** » Thu Dec 13, 2007 2:26 am

Couldn't find the thread

dantes, thats fair enough, I would be open to showing my trading records, how do I go about locating people who would be interested in viewing them? I think my strategy can be replicated at a larger level.. and the strategy would have to be modified to be optimal for a larger quantity of money.. i think my account shows that i've made a lot of good decisions, i'm hoping someone is willing to gamble that i can replicate those decisions with a larger amount of money

kanukatchit · Post by **kanukatchit** » Thu Dec 13, 2007 5:32 am

Maybe [url=/Show%20Post.aspx?PostIDKey=106545]this one[/url].

Also, in addition to what has been said before, people would want to know how you would react to a bad month, what is your maximum drawdown, do you have any references at all ? I think FoF's would be interested in your space (mid-small cap, US ?) to get that exposure but, maybe, with some risk management measures. You could post some statistics for your portfolio here, I would be interested, just of curiosity.

Bachelier · Post by **Bachelier** » Thu Dec 13, 2007 9:04 am

Needless to say, tax records aren't sufficient for due dilligence. We'd need trading statements, audits, etc.

But I'll take a look.

BTW, folks who've just started out on this for the past six years and have only been trading on the Shanghai stock exchange.....I have some terrible news for you...

that wonderful "slope" you have....

it ain't 'cause you are smart....

those listed companies with no revenues trading at 10,000x expected future earnings.....

I'm sorry, that price is not going to stay there.

When will all that crash? let me make a prediction.....

Currently only floor brokers on the Shanghai Stock Exchange can go "short"...there has long been pressure to change this rule and a not inconsiderable amount of it is coming from David Webb in Hong Kong.

So, someday they will set a date when everyone can go short.

You've heard of "The Day After"?

In this horror story, the title will read "The Day Before."

Bachelier · Post by **Bachelier** » Thu Dec 13, 2007 11:30 am

Okay guys.

I’ve looked at what Saagdiyev sent me.

It isn’t in a form for its most efficient use, and a cursory analysis of his returns confirms that he has a method that does produce the claimed returns he says he has. Unlike the poltroon Catastrophe our new member Saagdiyev:

1)      does have his claimed returns

2)      does appear to have a strategy

3)      it does look like it can take some limited scale

So I propose we welcome him to the forum and provide advice and assistance.

But Saagdiyev, this place runs two ways…you give a little, you get a little.

My first advice to you would be to use the search function here and dig a bit deeper into previous advice.

My next advice is: you have to put these results in a form for their most efficient use for a couple different audiences.

Those audiences are:

1)      an auditor who is going to give an unqualified statement that your statement of returns is a fair and accurate representation of your returns

2)      some sort of power point for jaded executives that sums up who what when where why how

3)      afterwards, if the jaded executive is impressed, he will send an analyst to do serious due diligence on you, and that will involve custody, back office systems, back up, making sure you can’t disappear with the money, making sure you don’t have a twin account with the exact same amount of *losses* as these gains, etc. etc.

Finally, the bad news: this is not scalable beyond 20 million. Sorry, but its true.

2% on 20 mil is 400k, plus 20% of your 50% return is 2 mil. Not bad, eh?

But with the drawdowns you say you’ve got, you will have to have a lock up (or you’ll have hot money in-and-outing you all the time). Lockups typically mean 1% and 15%.

Think long and hard if you can manage your overhead on 200k a year on this.

"but he's French, so I'll take the risk" errr, I'm a US citizen that just happens to work in France. But you are lucky, I happen to be a member of a religion that teaches if I steal or mistreat people I'll go to Hell. Since where I work occasionally resembles hell (this is *France* after all) I have no intention of spending eternity there.

Saagdiyev · Post by **Saagdiyev** » Thu Dec 13, 2007 5:14 pm

Bachelier:

i will dig deeper into the archives and learn what i can

I can input all my trades into a general ledger which would be auditable.. so i will take care of that first

Overhead of 200K is not a problem at all... I've spoken previously to a FoF/3PM who said they give initially 500K-2M; give 10% return; pay a base salary of ~45K; and pay for other expenses but the emphasis is kept on keeping costs as minimal as possible

If my performance is good, they would increase my AUM from seeking outside investors. However, this most likely will not happen as of now, due to the volatility in my account and my account being currently down.

I totally understand that my current strategy is not scalable to 20M, however I'm hoping to work with someone who, if I find initial success for a couple of years, will let me implement strategies more appropriate for larger AUM.

And sorry about the French thing, I was just trying to be funny.