Serious Qns for Bankers from a student-IB FO, hedge funds, PE etc

Hedge funds are necessarily, and sometimes it seems even intentionally complex, vehicles to try to glean modest returns from...they outperform public markets after risk discounts, but make no mistake - the nature of a hedge fund (or one worth its salt), as its name suggests, hedges to profit regardless of conditions and the inescapable tradeoff for these strategies is obvious...anyway, with the discombobulation in europe that is ucits iii and then ucits 4, and asia investors cutting directly to the chase with real estate and private markets investments and only the us showing signs of sustainability.. it does seem like you need a lot of specific passion, aptitude and resilience for a sustained career in this industry. Consider something that requires infinitely less mental and intellectual rigor and still pays disproportionately well...private equity?..lol

Originally Posted by QXP

I suggest you not generalise the whole industry and pontificate beyond your scope of expertise.

Hello QXP, I made it quite clear and consistent in my post that hedge funds do indeed vary over a wide spectrum in terms of strategies and trading patterns and that algorithmic trading is neither the exclusive nor superior way of trading. Here of phrases as quoted in my earlier post that shows I was very careful in not making that generalization.

Originally Posted by Donny

Not to say that those who use an intermediate level of math imply that they weaker performers. No, because they employ more fundamental analysis.

and

Originally Posted by Donny

No assumption is made on whether the need of a human trader is beneficial or detrimental.

We are on the same page here. I do agree with you that not all hedge funds employ algorithmic based strategies and definite agree with you that those doing so certainly does not imply them being the superior ones.

[lazyplane]

just to be clear

while it true there is a lot of money to be made in banking etc n of cos no lack of flaunters of wealth...

it is a job... and we make it be what we think it.

the ugly side is lots of number crunching ,listening to really boring statistics and trends, diving into drivers like methdology for cpi calculation , talking to old men and women whom r in management positions, lots of office politics etc

go talk to some older bankers -especially those not your age to get to know the real story. eg ask them what are some of stressful situations they face at work to see if these r the problems u want to spend your life solving....

I used to work with a bunch of guys on the sell-side, they got together with this quite well known buy-side guy from one of the major long funds. They started a hedge fund which has done well. Had a fund raising recently and they are closing applications having raised USD2.6bln!!!

Originally Posted by Unregistered

I used to work with a bunch of guys on the sell-side, they got together with this quite well known buy-side guy from one of the major long funds. They started a hedge fund which has done well. Had a fund raising recently and they are closing applications having raised USD2.6bln!!!

Who are they and are they based in Singapore? If they do reach 2.6b, I believe that would make them the biggest hedge fund which started in Singapore.

I'm not wrong, the biggest right now should be Ar*s**g Partners with AUM 2b.

Originally Posted by Unregistered

I used to work with a bunch of guys on the sell-side, they got together with this quite well known buy-side guy from one of the major long funds. They started a hedge fund which has done well. Had a fund raising recently and they are closing applications having raised USD2.6bln!!!

.. 2.6 billion who're you trying to kid mate .. that's probably total capital across all asia-focused hedge funds put together... your friends have just spun you a sad sellside fantasy

Originally Posted by Donny

Who are they and are they based in Singapore? If they do reach 2.6b, I believe that would make them the biggest hedge fund which started in Singapore.

I'm not wrong, the biggest right now should be Ar*s**g Partners with AUM 2b.

Just saw this Donny and my point exactly... and thats in SGD terms as well ..

Originally Posted by Unregistered

.. 2.6 billion who're you trying to kid mate .. that's probably total capital across all asia-focused hedge funds put together... your friends have just spun you a sad sellside fantasy

--- that is..total capital *raised* in whatever time frame you speak of ---

Originally Posted by Unregistered

I used to work with a bunch of guys on the sell-side, they got together with this quite well known buy-side guy from one of the major long funds. They started a hedge fund which has done well. Had a fund raising recently and they are closing applications having raised USD2.6bln!!!

and they left you out of it?

Originally Posted by Donny

Who are they and are they based in Singapore? If they do reach 2.6b, I believe that would make them the biggest hedge fund which started in Singapore.

I'm not wrong, the biggest right now should be Ar*s**g Partners with AUM 2b.

I like their diaries, highly informative and educational. But they are already more than 2 though, passed 3 a while ago even if you look at only their biggest fund.

On another note, does it seem like Asia's AuM/staff for hedge funds is rather on the high side? Seems to be around 10-20mil/staff while funds based in the US seems to be much leaner. I am guessing it has something to do with most Asia funds not having the scale to outsource their ops though.