White Man Stay Winning! edge Fund Manager Cries After Admitting He Lost $150 Million

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Dont you need some type Cert and I know a shed-load of bread as well

I use to be a portfolio manager for a hedge fund before. So it depends which country you're in, but the majority of the time a simple certificate is needed to manage others peoples money. In America, just a series 65 which is a test you can do in 3 to 4 months is all. Think you're from England so I am not sure about their certificates, Canada is an easy test as well.

It's not about certificates it's more about your public track record your performance record and the people you know. Hedge funds can only talk to accredited investors so people who make 250k a year or have a net worth of about 1 million dollars.

But there is a rule that says you can open a fund and I believe the first 10 people don't have to fit the description of the required amount so you could do it with family friends who don't have money that kind of money. So you could pull together some money and go offshore.

Offshore you could open up an office in say BVI(British Virgin Islands) and stay in London and open an offshore fund there and not move from London.

All in it's about performance. You make people money and not lose money it doesn't matter what background you're from or what you look like as long as you make other people money your golden. There is an insane amount of literacy on trading technique and methodologies. Also a ton of free courses from Nobel prize economy professor online for free.

Making money in the markets has nothing to do with being a financial guru. Honestly, a psychology major would do way better in the markets than same a math guru from a top tier university.

 

[KING WILL]

Mfer owe $125K!!!!!!

Damn, son I was thinking they owed a few 100, maybe a 1000, or so...

 

[FLATOP]

All that crying he's doing I bet he wasnt playing around with his comission money

 

[invalid]

How does one become a hedge fund manager

Dont you need some typa Cert and I know a shed-load of bread as well

I use to be a portfolio manager for a hedge fund before. So it depends which country you're in, but the majority of the time a simple certificate is needed to manage others peoples money. In America, just a series 65 which is a test you can do in 3 to 4 months is all. Think you're from England so I am not sure about their certificates, Canada is an easy test as well.

It's not about certificates it's more about your public track record your performance record and the people you know. Hedge funds can only talk to accredited investors so people who make 250k a year or have a net worth of about 1 million dollars.

But there is a rule that says you can open a fund and I believe the first 10 people don't have to fit the description of the required amount so you could do it with family friends who don't have money that kind of money. So you could pull together some money and go offshore.

Offshore you could open up an office in say BVI(British Virgin Islands) and stay in London and open an offshore fund there and not move from London.

All in it's about performance. You make people money and not lose money it doesn't matter what background you're from or what you look like as long as you make other people money your golden. There is an insane amount of literacy on trading technique and methodologies. Also a ton of free courses from Nobel prize economy professor online for free.

Making money in the markets has nothing to do with being a financial guru. Honestly, a psychology major would do way better in the markets than same a math guru from a top tier university.

I worked for a few hedge funds, and to piggyback, essentially anyone can incorporate a hedge fund and call themselves a portfolio manager in the same vein that anyone can incorporate a business and call themselves a business owner. Having the requisite skills is another matter.

In the US, the cert that is required to manage a portfolio for any respectable place is the Chartered Financial Analyst (CFA). It’s 3 Levels and is considered to be one of the hardest professional designations to attain out there (I can think of only one that may be more difficult and that is the actuarial exam/cert).

The thing about being a successful PM is that you need to both have the ability to manage other people’s money (otm) skillfully, and have the ability to bring in new capital. As the above poster said, you have to be an accredited investor to be able to invest in a hedge fund, so a successful PM would need to have a multi-million dollar network at his disposable. And a PM should be able to “sell” the fund. Larger funds have sales guys but just starting off, your sales game need to be top notch to convince folks to hand over their money.

In the US, you cannot launch an offshore fund unless you have offshore investors. Offshore investors are taxed differently than onshore investors. Because of this, your average hedge fund will manage both an “onshore fund” and “offshore fund” for legal purposes.

The issue with the goofy in the OP is that he entered into all of these high risk positions without a hedging strategy to address any risk he would incur. That fukked him up. The shytty part about this situation is that there was retirement money being invested which should not have been exposed to the type of high risk that the PM was taking on with this position.

 

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I worked for a few hedge funds, and to piggyback, essentially anyone can incorporate a hedge fund and call themselves a portfolio manager in the same vein that anyone can incorporate a business and call themselves a business owner. Having the requisite skills is another matter.

In the US, the cert that is required to manage a portfolio for any respectable place is the Chartered Financial Analyst (CFA). It’s 3 Levels and is considered to be one of the hardest professional designations to attain out there (I can think of only one that may be more difficult and that is the actuarial exam/cert).

The thing about being a successful PM is that you need to both have the ability to manage other people’s money (otm) skillfully, and have the ability to bring in new capital. As the above poster said, you have to be an accredited investor to be able to invest in a hedge fund, so a successful PM would need to have a multi-million dollar network at his disposable. And a PM should be able to “sell” the fund. Larger funds have sales guys but just starting off, your sales game need to be top notch to convince folks to hand over their money.

In the US, you cannot launch an offshore fund unless you have offshore investors. Offshore investors are taxed differently than onshore investors. Because of this, your average hedge fund will manage both an “onshore fund” and “offshore fund” for legal purposes.

The issue with the goofy in the OP is that he entered into all of these high risk positions without a hedging strategy to address any risk he would incur. That fukked him up. The shytty part about this situation is that there was retirement money being invested which should not have been exposed to the type of high risk that the PM was taking on with this position.

One small caveat though, there are a lot of PM that don't have full CFA. I didn't finish my CFA. A lot of prop guys, go out on there own and start their own funds. Prop guys already have there own books so no need to go down that path.

Even with small funds with decent size AUM or middle level funds can't recall coming across a lot of full CFA. Larger funds with huge AUM, PM would need both MBA and a full CFA.

In any case, a CFA, CAIA or MBA doesn't mean you can navigate the markets. Seen quite a few funds blow up during my time with so-called competent people behind the wheel.

 

[CarbonBraddock]

wouldn't be making a video after losing that much money, would probably disappear

 

[invalid]

One small caveat though, there are a lot of PM that don't have full CFA designation. A lot of prop guys, go out on there own and start their own funds. Prop guys already have there own books so no need to go down that path.

Even with small funds with decent size AUM or middle level funds can't recall coming across a lot of full CFA. Larger funds with huge AUM, PM would need both MBA and a full CFA.

In any case, a CFA, CAIA or MBA doesn't mean you can navigate the markets. Seen quite a few funds blow up during my time with so-called competent people behind the wheel.

True, hence, my "respectable". I've should have defined that better. I'm talking along the lines of a Citadel, Carval, Magnetar, etc - which are actual funds I've worked for or with, and have aums in the multiple billions. The smaller the shop the less stringent the requirements. My point was, as you pointed out, is that you're not getting into a PM role without the CFA at these funds. It's like the CPA, you're not going to make partner at a Big 4 Firm without it. You may can get away without having it if you have the commiserate experience at smaller firms, but it won't be in an audit capacity role which requires a CPA to sign off on audits. But in my experience, just with the caliber of funds in which I've had access, it is rare to come upon a PM that has not attained the CFA and/or MBA and I've worked in both NYC and Chicago, worked at both funds and hedge fund admins.

And I agree, having a professional designation doesn't prove that you are competent behind the wheel, it just means you're good at taking an exam.

 

[No..Money..Mo..Problems]

He got millions in the bank and he'll start over again in a year or two with the Phoenix fund. It's the white way

 

[King of Creampies]

black man wouldnt even be trusted with 1 million, but thee incompetent cac bros get hundreds of millions to play around with.

Don't believe that lie about your own.

There are black hedge fund managers.

Plain and simple the biggest obstacle is access and opportunity, something that very African Americans within financial services are afforded.

There are only a small handful of Black hedge fund managers who have the ability and necessary experience to attract investment.

Even those qualified cannot necessarily attract funds from a beneficiary pool that will allow them to grow, especially for a space that has contracted as many firms have closed since the recession.

There are people like Robert Smith, Robbie Robinson, Robert Johnson that have had great success in alternative investments that have shown success but few have been able to scale to that level of investments within the hedge fund space yet.

But this one, in particular, lost 150 million.....

 

[King of Creampies]

Making money in the markets has nothing to do with being a financial guru. Honestly, a psychology major would do way better in the markets than same a math guru from a top tier university.

Very deep.

Can you speak on why you believe this?

I never heard this before.

 

[ORDER_66]

He got millions in the bank and he'll start over again in a year or two with the Phoenix fund. It's the white way

WTF is a phoenix fund???

 

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A

Very deep.

Can you speak on why you believe this?

I never heard this before.

Sure, the markets are basically are a snapshot of what all the people in the silver futures market are thinking about silver at any one time.

So say we take a snapshot of the silver market. Basically a snapshot of the silver chart. And look at the photo we basically have a picture of what everyone in that market feels about silver. It's basically a snapshot of the minds of people.

So if it's a snapshot of people mindset set than people are bringing all there biases to the market. The markets are a perfect mirror of who you are as a person! You bring every single bias you have to markets. If you dont truly understand yourself as a person and understand how you operate when you make decisions the markets will relieve all your bias and flaws. Now some people believe that they understand themselves but they truly don't. If you don't have a solid deep understanding of who you are before entering the markets it will be a costly learning lesson.

A psychology major will have already ventured in the mindset of individuals and more likely venture into their mindset and know their bias and flaws, than a finance major.

Just like the cat who I quoted that worked in the same industry, some of the very best minds I have every encountered on this planet are managing individuals money. Those people aren't people with a large number of certifications behind their name. These individuals have 30 years plus of managing money in all kinds of market conditions. I have seen a great number of fund managers blow up. Same indovidusls that believed they knew it all because of their status.

So, for example, this cat that lost 150 million, it isn't his strategy that didn't work. It's his bias that came into play. Yes, his strategy was picking up pennies in front of moving train which was silly, but he would have blown up anyway. One has to ask why did he pick that strategy because he is knowledgeable enough to know he could have hedged his position. He would of blown up, at a different time. In my estimation, his bias is that he believes he can predicate future events!

 

[No..Money..Mo..Problems]

WTF is a phoenix fund???

Phoenix as in rise from the ashes, thats a good name for his next fund

 

[GunRanger]

Invest your money in a site no one ever heard of brehs

 

[CodeBlaMeVi]

black man wouldnt even be trusted with 1 million, but thee incompetent cac bros get hundreds of millions to play around with.

Any undergrad in economics knows that oil and commodities in general are cyclical and fluctuate like crazy. Most of it (oil) has nothing to do with supply and demand but politics. Humans are unpredictable for the most part so it depends on how much a person feels like producing.