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Looking for Connections in Asset Management

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Matt Dassel

Contributor
May 15, 2018
36
23
41
Hi, I've been looking for a few key connections withing the asset management industry to start what I believe can be a promising business. But over the years I have spent all my time developing a working strategy and solving all the problems related to this business. I was alone for quite a while. For this reason I lack sufficient connections to people in this industry.

I'm able to generate roughly 12% annualized with a 4% maximum downside risk over all of the capital employed. Because of the way I developed this strategy, this gives my investors a daily liquidity in this business. Withdrawals can happen in a time frame of just 1 day with no money lock-ups. These lock-ups are pretty common in this industry day. This is a managed account that I can scale up to a maximum of $5M initially. This performance is only achieved and operated in just one market.

Over the last year, 2/3 of the entire hedge fund industry lost money. Despite always charging the same abusive fees. (source: Article)

I am willing to do whatever it takes to get in touch with the right people in this industry and provide the investors in it with a solution a lot better than what is there. Even if it happens for just 4, or 5, investors intially with a small pool of capital.

I'm much appreciated for any of you who could provide me with such a direction and a person to talk to.

─Matt
 

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Last edited:

Kevin88660

Silver Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 8, 2019
877
815
307
Singapore
Hi Matt,

Nice to meet you. I am in financial sales. I tried breaking into the AM industry right after school but failed. I had prior experience in Prop trading in equity futures in a prop firm.

I have a few questions.

1) How old are you? What’s your education background? Do you have a strong quantitative background?

2) How many strategies do you use now? It seems that you are selling just one strategy and that is difficult for investors to have confidence.

3)What is the cost of setting up the compliance requirement in your country?

4)My experience is that it is almost impossible if you are trying to do this business as a one man show. Even just the trading aspect you need more than one person to stay ahead of the game. You need operation+ compliance+ marketing/relationship manager as well. If you do not have the network and you are in your twenties I still suggest the old way of joining more established prop firms. You need a team before you can do this business seriously.
 
OP
OP
Matt Dassel

Matt Dassel

Contributor
May 15, 2018
36
23
41
Hi Matt,

Nice to meet you. I am in financial sales. I tried breaking into the AM industry right after school but failed. I had prior experience in Prop trading in equity futures in a prop firm.

I have a few questions.

1) How old are you? What’s your education background? Do you have a strong quantitative background?

2) How many strategies do you use now? It seems that you are selling just one strategy and that is difficult for investors to have confidence.

3)What is the cost of setting up the compliance requirement in your country?

4)My experience is that it is almost impossible if you are trying to do this business as a one man show. Even just the trading aspect you need more than one person to stay ahead of the game. You need operation+ compliance+ marketing/relationship manager as well. If you do not have the network and you are in your twenties I still suggest the old way of joining more established prop firms. You need a team before you can do this business seriously.
Hi Kevin! Thanks for reaching out. Please tell me about your story if you don't mind. I am a very occasional forum user to be honest. To me, it is great to believe that a person like you could be found here and have this conversation concening this specific topic.
  1. 24 years old. Mechanical engineering background. I'm not sure about every detail concerning quants and what work they do. But what I have is made by myself only. I come from a trading background taught by Steven Hawkins and Peter Steidlmayer which is quite different than what the academic world is accustomed to. Most of us don't copy what is out there.

  2. I have a basic strategy that is operated only in foreign currencies because of the liquidity and market behavior. It can be scaled up to around $5M. All dependent on liquidity conditions. The basic resources I use are: (a) Access to prime broker to reduce counterparty risk and to have faster execution. (b) Basic order book to verify liquidity on the top during appropriate times. (c) Volume traded at each price. Or volume traded at each time and price in the correspondent day.

    I'm afraid to say that this one strategy is all that is required to deliver this performance, and without a doubt, it is up to me to be persuasive to convince these investors that this is definitely safer than other investment vehicles out there. There are such great things about this performance as daily liquidity due to extremely short time exposure, it's consistent and controlled, uncorrelated to broader assets. That I really believe this pitch is worth a shot. All the holdings would be entirely cash.

  3. For this specific idea, it would be something rather different than what a typical hedge fund is, so it would be set up off-shore but still could take US investors if appropriate licenses are acquired. Costs are at around $5K to $10K.

  4. This is a very subtle point because what is it that you are really imagining that it would be? I would say that there is very little similarity between what the industry is doing and what I am currently taking a shot at to pitch investors. The only thing I would do is convince you, and them, that this is exactly the reason why they should trust me. Because it's sophisticated, new, and takes current market conditions in consideration. To be better, to abolish the lock-ups the industry currently does, and to bring consistent results that are uncorrelated to other assets and index funds.
And again, it's great to believe there is actually people from Finance in here. Have a great day you all!

─Matt
 
Last edited:

Kevin88660

Silver Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 8, 2019
877
815
307
Singapore
Hi Kevin! Thanks for reaching out. Please tell me about your story if you don't mind. I am a very occasional forum user to be honest. To me, it is great to believe that a person like you could be found here and have this conversation concening this specific topic.
  1. 24 years old. Mechanical engineering background. I'm not sure about every detail concerning quants and what work they do. But what I have is made by myself only. I come from a trading background taught by Steven Hawkins and Peter Steidlmayer which is quite different than what the academic world is accustomed to. Most of us don't copy what is out there.

  2. I have a basic strategy that is operated only in foreign currencies because of the liquidity and market behavior. It can be scaled up to around $5M. All dependent on liquidity conditions. The basic resources I use are: (a) Access to prime broker to reduce counterparty risk and to have faster execution. (b) Basic order book to verify liquidity on the top during appropriate times. (c) Volume traded at each price. Or volume traded at each time and price in the correspondent day.

    I'm afraid to say that this one strategy is all that is required to deliver this performance, and without a doubt, it is up to me to be persuasive to convince these investors that this is definitely safer than other investment vehicles out there. There are such great things about this performance as daily liquidity due to extremely short time exposure, it's consistent and controlled, uncorrelated to broader assets. That I really believe this pitch is worth a shot. All the holdings would be entirely cash.

  3. For this specific idea, it would be something rather different than what a typical hedge fund is, so it would be set up off-shore but still could take US investors if appropriate licenses are acquired. Costs are at around $5K to $10K.

  4. This is a very subtle point because what is it that you are really imagining that it would be? I would say that there is very little similarity between what the industry is doing and what I am currently taking a shot at to pitch investors. The only thing I would do is convince you, and them, that this is exactly the reason why they should trust me. Because it's sophisticated, new, and takes current market conditions in consideration. To be better, to abolish the lock-ups the industry currently does, and to bring consistent results that are uncorrelated to other assets and index funds.
And again, it's great to believe there is actually people from Finance in here. Have a great day you all!

─Matt
Hi Matt, I am 31. I an a self-employed financial adviser doing financial sales. My background was in Economics. I am based in Singapore.

Right out of school I actually worked in a proprietary trading firm. Eventually I left the field and decided to trade as a hobby because I do not the scalability to run it as a worthwhile business and the strategies I use require constant monitoring of the market. It does hurt the health to stay awake at 3am to watch what is going on in the U.S.

It sounds like you have something good working for you. Everything is correlated with one another these days except cryptocurrency. Uncorrelated gain could be a good marketing point for your fund.

Maybe you can look at the online trading community. I have heard of communities whereby they have investors who look for promising traders to park their money with.

Do you have affluent relatives and friends? They could help a lot since your start-up Capital requirement is not a lot.

My opinion is that to stay in the business that you love you need time to grow and learn. No single strategy last forever because there are so many smart people looking at the market daily looking for alpha. And it takes time for you to build a meaningful track record.

So I think it could be good for you to figure out what is the minimum amount of AUM you need to stay alive in this business? That’s different for everyone. For example if you need 30k a year to cover your own expense and run the cost of business, you are looking at at least 400-500k capital. Are you able to get access to this from friends and relatives alone? I see this as the main entry barrier for most aspiring traders. Most people quit not because they run out of trading ideas because they run out of money to pay the bills.
 
OP
OP
Matt Dassel

Matt Dassel

Contributor
May 15, 2018
36
23
41
Hi Matt, I am 31. I an a self-employed financial adviser doing financial sales. My background was in Economics. I am based in Singapore.

Right out of school I actually worked in a proprietary trading firm. Eventually I left the field and decided to trade as a hobby because I do not the scalability to run it as a worthwhile business and the strategies I use require constant monitoring of the market. It does hurt the health to stay awake at 3am to watch what is going on in the U.S.

It sounds like you have something good working for you. Everything is correlated with one another these days except cryptocurrency. Uncorrelated gain could be a good marketing point for your fund.

Maybe you can look at the online trading community. I have heard of communities whereby they have investors who look for promising traders to park their money with.

Do you have affluent relatives and friends? They could help a lot since your start-up Capital requirement is not a lot.

My opinion is that to stay in the business that you love you need time to grow and learn. No single strategy last forever because there are so many smart people looking at the market daily looking for alpha. And it takes time for you to build a meaningful track record.

So I think it could be good for you to figure out what is the minimum amount of AUM you need to stay alive in this business? That’s different for everyone. For example if you need 30k a year to cover your own expense and run the cost of business, you are looking at at least 400-500k capital. Are you able to get access to this from friends and relatives alone? I see this as the main entry barrier for most aspiring traders. Most people quit not because they run out of trading ideas because they run out of money to pay the bills.
It's great to meet you, Kevin. I hope you can succeed to. Please keep me updated on any changes on this environment.

Because I worked alone for many years I have a very modest networking around this field. It's usually hard to find people to talk about these ideas. And when you find them, they are usually reclusive.

I've been with FundSeeder for around a year now. There is a guy trading with around $5M and making an unbelievable 1% maximum drawdown with 8% annualized returns.

It's really part of my ambition to continue down this and incorporate a business and work regulated in this industry. But FundSeeder is a rather passive method for looking for investors and I decided to go after them by myself. As there is a lot more that I believe I could pitch investors with rather than just using my track record.

My goal is to set up this business and take something around $200K/year from performance fees. I'll have a lot of free time on this business and that will allow me to scale up on other ventures.

Have a great night! ─Matt
 

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