So HF manager buys 100mil FB on Friday, good read, good read.

JoshFi7

tctc33

JoshFi7

Edmundo BravermanGuess what? He'll still collect 2% of his remaining AUM this year. Hedge fund comp is such a joke. Nowhere else can you be paid that much to be that wrong.

Might be true. But no business runs you out of business faster than losing money.

Or gives more second chances to colossal screw-ups. Also, when they lose money, managers don't earn any promote until they make it all back. Sometimes the economical thing to do is just shut it down and go work at a fund that's above its high water mark.

The saddest thing about these funds is that everyone analyzes their inception return.

Therefore inception may be positive but dollars returned to investor negative.

Year 1: Return 50% on $10million. Account=15million. Year 2: Investors deposit 5 million for AUM of 20 million. Return 50%=Account =30 million Year 3: Investors deposit 30 million for total Aum of 60 million. So far invested is 10 million, 5 million, 30 million=45 million. Now it only takes a 25% loss to wipe away all profit returned by manager. But it takes 50% loss to get the inception to 0%

I don't think we judge an HF's success based upon its since-inception return...