June 1 -- Patrick McCurdy, head of capital introduction at Wells Fargo Prime Services, explains how small hedge funds go about raising capital and how much money is needed to start a fund. He speaks on “Market Makers.”
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People are shitting on the woman but she was voicing legitimate concerns. There are reasonable questions to be asked regarding the growing institutionalization/centralization of the hedge fund industry. It’s not as easy for new fund managers to scale as it was several years ago.
Capacity challenges are a very real head wind that is the enemy of capital gains. Of course most "institutional" capital allocators have 0 clue. Literally empty suits. Daily I see the prices the assumed "smart money" pays, truly comedic.
right, well put. t sounds like you may have an academic background in finance. i'm not sure what some fund managers think when they say talent. If we were to gather information on a security before it reached the public i suppose that would make us "talented" wouldnt it?
Schrodinger's Cat I'm with you. It does require a bit of talent when you're able to consistently beat the markets via your investment strategies, a lot are activist investing for positive business development changes. I believe a lot of the talent has more to do with the other actions that go into raising capital, swindling investors, indexing, Asset allocation, hedging strategies, forecasting shorts, etc. are all talent (as well as analytically) driven processes when able to distinguish.
That woman has no class and shouldn't be working as a reporter for Bloomberg...just look at how she crosses her arms when the guy is talking, so rude and obnoxious. Also, she has no clue on how asset allocation is done.
This is why so many people going into the industry don't make any sense to anyone else except themselves and others in the industry - they are jargon confused (they think they make sense), they don't - they just make returns. I wouldn't hold it against anyone that's making returns - who cares - but it's not a great long term language standard for the industry.
So we have a conversation about Hedge Funds, Market Makers on the propaganda board in the background, and a general misconception of "Hedge Funds."
Market Makers are "big movers" not Hedge Fund managers. Hedge Fund managers will go to Market Makers - Multiple market makers. But Market Makers can't Dole out to singled out Hedge Funds, they deal to everyone...
A hedged position is a strategic position made by a wealth manager but this has nothing to do with "Hedge Funds." A bank that makes it's own hedge fund could possibly be the only cross of identity where - they all come together in one character of definition. But a mock Hedge Fund is simply another term for a private investment firm. These certainly aren't market makers and they definitely aren't wealth managers that create strategic hedged positions, they simply want to generate returns.
Market Makers aren't strategic investors - they are product hubs... He's only return driven and wants to mimic being a product driver. That's a niche service but a firm will need to work through a wealth manager that partitions funds to some "hedge funding" for the sake of returns... But an internal firm wealth manager is able to hedge their own positions through customized strategies. It's an industry misunderstanding of the term "hedge." It's like calling everyone a Democrat because the people believe in democracy, it's a general misconception of terms, looks like babble jargon - with some successful returns.
Nobody knows how to Allocate their funds... The Banks didn't even know - that's why they failed and needed a bailout. Firms don't know how to make professional allocation. And this guy is all about the dollar return but doesn't seem to care about strategic positioning, A typical hairdo investment manager. Successful non-the-less...
The women is in fact asking the right questions. She is right that big money gets more bigger. The wells guy sounded like a quack repeating the same without any examples when asked for since his wipes the ass of all fund managers big or small.
Jesus you sound like a person speaking out of their ass on finance. Yes bigger companies get more money because they're more established with their clients and more well-known by name brand as well as more respected among the investor community. There's not gonna be a lot of clients that are gonna line up for a smaller start up. As time and experience and loyalty grows, that's when start ups get more established.
Lol we aren't dealing with angels here boys, don't fall into the post trump trap of just aligning yourself with these guys, still have to keep an eye on em always look at everything with a decent amount if scrutiny, ESPECIALLY when dealing with billions of dollars like these guys are, the game they play isn't for the innocent, don't be a sheep.
Lol. "He doesn't need to have experience with hedge funds..." Yeah he does. What does a hedge fund do? It puts money in extremely risky stocks and also has a portion to cover the risk of losing initial investment, whether its conservative blue chips or shorting certain companies or such.
And morons put money in hedge funds? Funny how John Paulson, Carl Icahn and Jamie Dimon have hedge funds, invested in them and made moves in them, and made profits off of the recession in 2008.
By the way, long term returns? There was a wonderful study by Business Insider that showed the returns of the Dow, S&P, and the Credit Suisse Hedge Fund Index. From 2005-2012, hedge funds outperformed the market by a wide margin.
While yes, 95 percent of funds don't always outperform the market, there are a percentage that do and some do by a great extent.
Next time, do your research before sounding ignorant.
He doesn't need to have experience with hedge funds to know how they operate. Only a moron puts money into a HF. Look at the long term returns. And they don't provide any efficiency to the markets, only liquidity.
Who gives a shit about the virtue of the entire system? People in this industry want to make money. It's that simple. If anyone who works in the financial industry tells you he does because he likes the morale, world changing, world saving or other BS is straight lying. Your point is not false, but you need to question that somewhere else.
+shyF0x Yeah I think it was a great discussion. Sad this video only has a few thousand views :/ Maybe if more of our society was interested in educating themselves about the world and how the country operates then we wouldn't be where we are now socially