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Much better said than what I just wrote... I can only second that.
:-)
Gwenn
mike wrote:
> Dear RealTraders,
>
> In this vein, that might explain why some commodity trading advisors hire
> marketing and administrative people to run client communications and leave the
> traders strictly to trading. Just because someone trades really well doesn't
> mean they can run a full flung money management business by themselves - those
> are two totally different things and require different sets of skills and
> personalities.
>
> I recall hearing a story about Richard Dennis in the early 1980s - one of his
> clients called him up one day to complain why his accounts weren't in a recent
> runup in crude. Talk about second guessing! Not only did Dennis close the
> account that day, but he rarely, if ever, talks to clients anymore. He's got a
> bunch of competent people to do that now.
>
> Strupp
>
> wallst wrote:
>
> > Really think twice before you start managing money for someone else. I
> > tried to do this a few years back and it was one of the most difficult
> > things to do, and im not talking about the managing of the money, the
> > customers and clients can be VERY difficult to work with and can add a
> > tremendous amount of pressure on your trading. In the end I just shut it
> > down and gave everybody back their money. It wasn't worth the hassle. I
> > think Marty Schwartz talked about the same thing in his book Pit Bull. It
> > goes back to the thing where when your the hero everybody loves you, but
> > once it goes the other way, then every ten mins the phone will be ringing,
> > asking what is going on. This is not to say that it shouldn't be done. I
> > think with the right mix of client and methodology, it can be very
> > successful. But just remember that its one thing to trade for yourself and
> > all you have to do is worry about yourself. Its another thing to trade for
> > a group of different persoanlities, Keeping records for each and everyone of
> > them, trying to explain everything you do(What do you mean we got stopped
> > out?). Im not sure what your real motivation would be for starting one,
> > just make sure that you really know what your getting into before you do it.
> >
> > Troy
> > wallst@xxxxxxxx
> > ----- Original Message -----
> > From: Levent Erbora <erbora@xxxxxxxxxxxxx>
> > To: <realtraders@xxxxxxxxxxxxxxx>
> > Sent: Saturday, March 25, 2000 11:28 PM
> > Subject: [RT] Managing Money
> >
> > >
> > > What would be the best type of business entity to form for investing and
> > managing a few other people's money?
> > > A limited partnership? A "limited liability corp. (LLC)" maybe? Something
> > else?
> > > What would be the pros & cons for the above?
> > > The number of investors would probably be less than 10, and the funds
> > would mainly be invested/traded in the stock market (no
> > futures/commodities).
> > > Also, what would be the typical or generally accepted fee structure/profit
> > sharing arrangement between the investors and the money manager?
> > >
> > > Any and all advise, insights and pointers will be greatly appreciated.
> > >
> > > Thanks in advance for your time.
> > >
> > > Best regards,
> > >
> > > Levent Erbora
> > >
> > >
> > >
> > >
> > >
> > >
> > >
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