Say goodbye to the dream

[Foucault]

[ QUOTE ]
Say you could go back to HS. You decide your goal in life is to make a boatload of money.

[/ QUOTE ]

Right about here is where you should start doing things differently.

[DcifrThs]

[ QUOTE ]
Its is his own alpha baby!

[/ QUOTE ]

not necessarily:

[ QUOTE ]
According to BusinessWeek magazine, SAC Capital Partners routinely accounts for as much as 3% of the New York Stock Exchange's average daily trading, plus up to 1% of the NASDAQ's – a total of at least 20 million shares a day. In addition, SAC reportedly has a considerable stake in New River Pharmaceuticals [5] and in California solar power firms [6] [7].

[/ QUOTE ]

sounds like he is taking extremely risky positions. one could argue that his investors are being compensated accordingly...however, the length of time and # shares traded/day indicate that if one decomposed his returns to alpha (returns linked to his ability to be better than the market) and beta (returns linked to the amount of riskiness inherent in the positions he takes), the alpha would still likely be quite large relatively speaking (maybe 15-25%, and another 20-30% simply compensating investors for extra risk)

unfortunately, he runs a very private fund w/ no information out there to study.

regardless, investing in his fund is extremely risky. much more so than anything you could probably imagine. he may have open shorts and naked (purchased or written) puts/calls all on leveraged money. from the literature it seems that his fund is >50% leveraged.

nevertheless, his returns and the consistency of them are staggering. f*cking sick.

Barron

[fsuplayer]

[ QUOTE ]
Quote:
Its is his own alpha baby!



not necessarily:

[/ QUOTE ]

im pretty sure kkf was just poking fun at you. [img]/images/graemlins/smirk.gif[/img]

[DcifrThs]

[ QUOTE ]
[ QUOTE ]
Quote:
Its is his own alpha baby!



not necessarily:

[/ QUOTE ]

im pretty sure kkf was just poking fun at you. [img]/images/graemlins/smirk.gif[/img]

[/ QUOTE ]

yup [img]/images/graemlins/blush.gif[/img]

Barron

[Riverman]

Why do people refuse to admit how much people make on Wall Street? Enough with the "NO WAY PEOPLE MAKE 100k THEIR SECOND YEAR" stuff- first year Goldman analysts made anywhere from 130k to 170k last year with bonus.

[invisibleleadsoup]

i think people are disputing the suggestion that it's easy to clear 7 figures after a few years-no one is doubting that people make 150k a year in these jobs

[N 82 50 24]

[ QUOTE ]
Enough with the "NO WAY PEOPLE MAKE 100k THEIR SECOND YEAR" stuff

[/ QUOTE ]
Um, who said that? And if someone did and I missed it, I think everyone here agrees that most people in these positions make that much or more in their 2nd years (after bonus).

[citanul]

dcifr,

fwiw, and i know this is only a small part of your post, from what i understand, california solar is not a very risky investment.

citanul

[DcifrThs]

[ QUOTE ]
dcifr,

fwiw, and i know this is only a small part of your post, from what i understand, california solar is not a very risky investment.

citanul

[/ QUOTE ]

the riskiness i was quoting was definately the 3% and 1% of a market traded each day. thats not only large transaction costs, but very high risk. the other investments (which i have not even glanced at) were included for completion of the statement i copied.

i guess the only point im trying to make (however obvious) is that while this individual may be the best in his field, he may not be that far ahead of his peers when measured on a level playing field (of systematic risk). time will tell if he can continue clocking these massive returns.

Barron

[Azalin]

[ QUOTE ]
best of luck strass!!

[/ QUOTE ]