Yahoo Finance Tech Ticker had a video on Finbar Taggit, a hedge fund blogger that anonymously corrects incorrect stories in the press about hedge funds. See the video above, or the link for the story.
Some buzzwords:
- Rebates
- Performance fee
- Large ticket
- Lock ups
- Side letters
- Side pockets
- Seed capital-- $40MM used to be enough for investors from Goldman Sachs and Morgan Stanley, but now they want to see at least $100MM in your startup fund before recommending you. The average investor won't invest in a hedge fund unless it has at least $125MM in it. As he says, the days of starting a hedge fund with just a laptop are over.
- Risk/Reward criteria
- Market neutral
He says that contrary to popular belief, the credit crunch that started in August of last year was not due to hedge funds, but caught most of them in the muck with the rest of us. Now hedge funds are not finding many investors due to the "safety issue" of cautious investors, scared of the markets.
