Say goodbye to the dream

[Daliman]

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All,

Just as an FYI, here's the sort of upside opportunity for those who get to the top of this field:

SAC Capital, Stephen Cohen

Last year he reportedly made about a billion dollars.

There was an excellent WSJ or NYT profile of him a month or two ago.

He manages somewhere in the neighborhood of $10B. Some of his funds he takes management fees of up to 3% and takes up to 35% of the profits. His last $2B fund he waived the management fee and took 50% of the profits.

This guy of course is a superstar and few people will ever have the consistent success he has had that has allowed him to grow his funds to this scale. A more typical arrangement is someone taking a 1-2% management fee and then 20-30% of the profits. So, even if you aren't quite Stephen Cohen, but can get people to invest $50M in your fund and can make a 20% return for them, that's a pretty nice payday to get you started. There are tons of smart guys in this business who have managed to put together funds of a few hundred million at a pretty young age.

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jesus christ 1 billion isn't an income it's a GDP. what do they even do with that much money?

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This kinda investment sounds a lot like the hedge fund Ed thorp and Michael Milken were involved in that I read about in "Fortune's formula". They can make tons by leveraging, but if "disaster" strikes,(which is about every 7 years or so...) everything goes for pennies on the dollar. It may not be, but NO ONE is worth that kind of $$$, and anyone paying those kinds of fees should have his head examined.