99ATLANTIC------------- Are you dealing with institutional investors, who may have a detached attitude about fees and fund losses, or individual investors, who do feel the pain of losses and fees? Each has a different level of objectivity.
I've never bought a bridge, but if you could sell bridges for 19 years the way Simons has returned 33% a year by cheating and not getting caught, then please sell me one (Here's the link to that figure: http://nakedshorts.typepad.com/nakedshorts/2005/12/renaissances_re.html) BTW - saying someone is cheating because you can't reproduce the results is just a sign of jealousy... I'll personally admit that I'm jealous right now btw - I wish I could do that with even 50k let alone 6B.
Oh, and that's a 33% return AFTER the 5%/44% fees.... I.e. the average return for his fund is actually over 77% per year...
ironically, nobody in china (a communist nation) complains about potential to make hundreds of millions.
Your math is way off. The 5/44 is fairly recnet, Medallion started off at 2/20. The 33% net number does not include returns on failed Rentec funds folded into Medallion. It also includes recnet years, when Meallion could hardly have been considered a public hedge fund -- it has been closed to new money since 1996 and gave back the last public money at the end of 2005. For the period during which Medallion was a public hedge fund, gross returns averaged about 45% per year. An impressive result, but not 77% pa.
Shows how spoiled and pampered and entitled americans are. Weve nearly completely lost the philosophy of our founders. So sad.
I still stick by DOW @ 196,234,523.45 by 2798 Both. Mayhaps I've been lucky with the individuals I've run into, but they all understand that it's impossible to win forever and you will go through drawdowns. As long as you can return 20+% on a fairly consistent basis, they're willing to grin and bear both drawdowns and fees. Especially fees since they know they can't produce these returns w/o any help.