Trader -> Hedge fund manager -> Bum

You slog it out as a Trader for a few years and realise that you're a boss. You become a PM and realise you're a boss. Other bosses realise you're a boss and they along with all their boss friends give you some money to play with. You become a hedge fund manger and confirm to all that you're a boss. You generate good returns for a few years and find yourself sitting on a few hundred mil. You close your fund and become a bum.

With a few hundred mil, there are not an awful lot of industries which are closed off to you. Why then is it that we hear very little about hedge fund managers using their cash to become bosses in other industries? Thoughts?

9 Comments
 

With all that cash, why would you want to spend more time working instead of doing whatever the hell you wanted to for the rest of your life?

 

they became a boss because they loved it, not because they wanted to become a boss

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

But the same is true of trading - you don't make money on every trade. And more importantly, if you're sitting on a few hundred mil (which you are now only managing for yourself), what stops you from say stashing half and taking on more risk outside the financial markets?

I can appreciate that these guys made it to where they were by really enjoying what they do but surely the idea of managing risk and hitting jackpot once in a while is not limited to the financial markets?

 
Best Response
GordanBatemanBut the same is true of trading - you don't make money on every trade. And more importantly, if you're sitting on a few hundred mil (which you are now only managing for yourself), what stops you from say stashing half and taking on more risk outside the financial markets?

I can appreciate that these guys made it to where they were by really enjoying what they do but surely the idea of managing risk and hitting jackpot once in a while is not limited to the financial markets?

what do you suggest? joining an oil and gas corp and proposing that they should go dig in the middle of Iraq? joining GE and telling them shut it all down and focus on teleportation? going into real estate and asking them to build the tallest building in the world out of balsa wood?

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 
Oreos what do you suggest? joining an oil and gas corp and proposing that they should go dig in the middle of Iraq? joining GE and telling them shut it all down and focus on teleportation? going into real estate and asking them to build the tallest building in the world out of balsa wood?

Is there sand in your vaj? I didn't mean a boss in the literal sense. Financing can be a barrier to entry in a lot of industries and that doesn't exist for you in the same way if you're sitting on a mountain of cash.

 

Make next topic asking why Bill Gates doesn't start a hedge fund. He has capital and he has smart people to come up with a quant strategy, amirite?

 
GordanBateman
Oreos what do you suggest? joining an oil and gas corp and proposing that they should go dig in the middle of Iraq? joining GE and telling them shut it all down and focus on teleportation? going into real estate and asking them to build the tallest building in the world out of balsa wood?

Is there sand in your vaj? I didn't mean a boss in the literal sense. Financing can be a barrier to entry in a lot of industries and that doesn't exist for you in the same way if you're sitting on a mountain of cash.

no need to be so defensive. But seriously, what do you suggest? What industries are there where one man with no prior experience or expertise can flourish at a level that a 'boss' would be accustomed?. Particularly baring in mind that this guy isn't a born entrepreneur (as if so, he would already be one)
"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

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