On a hypothetical basis that you’re generally a good investor and that you have a CFA charter, how likely are you to be running your own fund?
*just for daydream purposes while studying for level 1
You’re about to learn how things work around here pkrmstr…
You gon’ learn.
Based on investor polls, the 2 most important attributes of fund managers are academic pedigree and company pedigree. You left out the most important things.
Sponsored in part by:
Depends on the person. If that’s what you want to do, then do it.
It all comes down to whether or not you or someone you know can raise money. As other’s indicated above, a good pedigree from a top notch school and/or background at some mega-brand name company within finance is usually a good starting point for either being able to raise money yourself or knowing someone that can. I’d argue the following holds:
Knowing people > track record > … > CFA charter.
Edit: and by knowing people, I really mean knowing people with money or people in a position to make allocation decisions for other people with money or institutions.
TL;DR: knowing the right people will get you started, a good track record will increase your chances of staying in the business; CFA charter is at best a garnish for those other factors.
^This. You can start a hedge fund with
That and a way to actually execute your trades is all you really need. Once you have a good track record, hire a hot woman to lead your Investor Relations efforts (salesperson) and become the next Bobby Axelrod.
I guess everybody wants to be Axe yeah?
Thankfully, because my parents run their own business, I realized early that to do anything in this world, you really need to know the right people. I mean, it just makes things a lot easier on your end.
I can’t stress this enough…well said!!!
I work at a fairly reputable Fintech and I read somewhere (not sure, maybe someone can add to this) that 90% of all hedge funds start with less than 20 million in capital. CFA charter means nothing unless like someone said before, you came from a TOP firm. Looks better on your website bio. I get phone calls from guys that are just starting with family and friends money all the time. CTAs I often see setting up shop with a lot less than the 20 million dollar threshold. It is either you turn in a few years of 20%+ gains out of the box or your looking at extinction. The average Hedge Fund only lasts 4 years analogous to a professional football players career.
Just take your $1M and go on a first loss platform. Put your money where your mouth is.
I WOULD QUIT MY JOB TO DO THIS RIGHT NOW. Can you help me get there? Although I can only contribut $20K. I want to be levered up 5 times…
