Howard Wang, a former analyst at Ray Dalio’s Bridgewater Associates started Convoy Investments LLC, a macro fund that isn't charging a performance fee and only a 1.25% management fee. He's also taking foundations and pensions money for free -up to 25% AUM.
http://www.bloomberg.com/news/2014-08-05/ex-bridgewater-analyst-wang-st…
Thoughts ?
I think he's just trying to break from the pack to have an easier time raising capital. You don't hear about Bridgewater alumni very often.
How is what he is doing more honest? It's a hedge fund that works like a mutual fund and that's supposed to somehow make sense? Makes very little sense...
I would much rather see honesty along the lines of what Convexity has done with their "clawback", rather than this silly gimmick...
This seems like a good example of you get what you pay for. Why would anyone give a 28 year old junior level employee from Bridgewater without any real investment responsibility any money and then pay him for beta exposure? He is right that most funds don't merit a 2/20.
Surprised to see this given what you read/hear about Bridgewater's lawsuits/non-competes etc (even at lower levels, from what I hear). Comments about current capital managed lead me to believe this may be because he's really struggling to raise funds.
He quit (was fired from?) Bridgewater in January 2012 and has been working on his track record since.
His 32-year old partner looks older than Greg Oden.
I'm not sure why they need a $200M raise. Sure, everyone would like to start big but be realistic. Start small for a couple of years, prove yourself, and then raise more funds. My guess is they can't because some flamer like these guys will come in, charge 1%, and also follow a beta strategy.
Disaster waiting to happen in my opinion.
I heard about this. That guy must be really desperate for money and has absolutely no track record or leverage in negotiation to show for. If I were a LP I would be very wary of something like this. It means little that he only takes 1.25% management fee if after a year your asset shrinks.
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