I have a smaller capital of 50k and I came accross a hedge fund manger who is willing to consolidate smaller accounts. What questions should I ask this guy and how should I evaluate the opportunity?
- Joined May 2009 | Status: Member | 1,879 Posts
Markets are not efficient, rather they are effective - Jones
- Joined Dec 2012 | Status: On Life's Path | 2,076 Posts
I've been invested in funds for several years & my suggestion is only invest if you can see a track record. Some funds/traders will give you excuses as to why they can't show you a track record but for me that just eliminates them as an investment. I've been burned by someone "talking" about how many years they've been trading, how well they've done, etc., etc., .........
Talk without proof to back it up is just "talk". I'm sure you've seen plenty threads here on FF telling of _________% return, "just trust me & I'll show you the money." Ha Ha.
Most hedge funds perform worse than the market(s) they trade in. See for yourself here (https://www.google.com/?gws_rd=ssl#q...eat+the+market ).
If you have a track record from your hedge fund you can post it here & I'll give you my opinion. It won't be wrong or right but if you've never invested in a fund I'll at least try to show you why I would/wouldn't make the investment based upon my risk tolerance. From my perspective the most important question to ask yourself is "How much can I lose if I make the investment?". If you're comfortable with the potential for loss, then ask "How much can I profit if I make the investment?" Compare the risk/reward & make the decision.
Talk without proof to back it up is just "talk". I'm sure you've seen plenty threads here on FF telling of _________% return, "just trust me & I'll show you the money." Ha Ha.
Most hedge funds perform worse than the market(s) they trade in. See for yourself here (https://www.google.com/?gws_rd=ssl#q...eat+the+market ).
If you have a track record from your hedge fund you can post it here & I'll give you my opinion. It won't be wrong or right but if you've never invested in a fund I'll at least try to show you why I would/wouldn't make the investment based upon my risk tolerance. From my perspective the most important question to ask yourself is "How much can I lose if I make the investment?". If you're comfortable with the potential for loss, then ask "How much can I profit if I make the investment?" Compare the risk/reward & make the decision.