It takes a special person to charge 2% & 20% on the overage. I’m not saying it’s not deserved. Or not earned. Or dumb. Or smart. It’s just the way hedge funds do it. And how can I blame the money manager?…
He’s 40. He has $7 million in the bank. It’s his number. He can retire right now. He knows it. And he’s wondering what next year will look like. Afterall– he’s trading convertibles, arbitrage. How much better can it get than 2010? 2011? The last time was the 90’s. He’s eating fruit loops & watching tv by 11am.
So he’s faced with this reality…Does he want to hang on for the next 10 year business cycle to play out?
It’s an interesting aspect of finance. There are tranches of reflection. I don’t know how many other professions other such a dramatic pause.
…but I digress.
Finance probably won’t be able to sustain this model too much longer. It’s due for disruption on price. It’s time has come. The automation of another industry has become inevitable. And the low cost model will pervail (again) for at least the next 10 years. And he has to know it…
Me? I’m on the get rich slow program. Lasts longer that way.
I heart Adult Language
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