I remember reading about John Arnold in Trader Monthly. He had a hell of a year and was one of the key players who caused Brian Hunter at Amaranth to lose all of that money by taking the opposite bet.
Is there a "Becoming the Head of a Wildly Successful Hedge Fund for Dummies" book out there? Maybe I'll pick it up because I didn't see any high school band directors on this list...
To really make a lot of money in a hedge fund you have to have a lot of your personal capital in it, a lot of capital in general ( > $100M), and a lot of leverage to magnify gains. After you do all of that, you need to find a strategy that will be able to consistently give at least 20% annual returns. Once you get all of that, you will be able to charge your investors around 2% of total assets and 20% of total profits every year.
Yea, John Arnold's bet on natural gas was opposite of Amaranth. In the end Centaurus had a record year, returning something like 300% and Amaranth blew up. It literally shut down due to losses from that one wrong bet on natural gas.
John Arnold this, John Arnold that....blah blah blah...I guess I'm just tired of "infatuation" about the super-rich in general. Ok, this guy had an amazing year...I get it.
My wife's boss made the list for the first time (another hedge fund)! Thanks to her, it's gonna be a good Christmas!
the guy was balling out of control last year. that trade he put on was stellar. to me it's more about the performance, which happens to be measured in money.
I don't think so. Hedge funds are just one aspect of the company. I should say it's an Asset Management company. Emerging Markets Private Investments Institutions Distressed debt All kinds of things. They’ve been around since 1995 and are pretty diversified.
Yes but the problem is that everybody has read it by now, and now all the funds are running MS Hedge Fund Guy version 3.5 XP software - which does not account in its calculations for the fact that everybody else is simultaneously running the same software and so it doesn't always function properly. This sounds too ridiculuos to be true but it kind of is.
For every John Arnold, there are thousands that tried to be but failed. To be a successful hedge fund manager, you need all the starts to align for you at the right time: those being smarts, timing, capital, and dedication. Lack of any will just make you a statistic. I once tried to start and run a micro hedge fund ... but I am still not rich. The fund is still there ... or the shell of it ... but I am just a statistic. John Arnold has all those ingredients going for him ... and that is to be congratulated. For someone so relatively young, it is very impressive and inspiring. And remember, for every John Arnold, there is also a Brian Hunter.
