I'm a small investor looking for +10% annual return. Managed Account, Hedge Funds, what are my options?

Question

I heard Jim Cramer on Hardball today (02/09/07) talking about an equivalent Hedge Fund for small investors offered by Goldman Sachs. Here 's the thing, I don't want to waste my time trying to be my own hero, I want a renowned company to do the investing for me. Why is it so hard for the small guy to be part of the club? Isn't it obvious that if there were easy-to-find alternatives out there for the small investor the average Joes would inundate these type of accounts probably exceeding the combined wealthier accounts' assets?

I understand 'Gosh137', that's why Etrade or whoever should come up with a managed account for all investors. You'd make an electronic transfer, pay a fee and take the risk. There's a big market out there for small investors like me willing to take some risk or might as well just open a savings account with a 5.5% yield.

Answer 1

Hedge funds are not for the little guy. You need a lot of money before you can legally invest. Research mutual funds if you do not have enough money for a hedge fund. There are plenty of good ones out there. 10% is optimistic over the long run but I'm sure you can find some.

Answer 2

I do not remain calm. I studied hard on this. I looked around. The hardest working person I know cleans hotel rooms, or mows lawns, or washes dishes. I ask every worker what they make. From 7 to 12 thousand a year is what everyone here makes. I asked the desk ladies, the bank tellers, the cooks, the cashiers. Nobody has ever hit 20k a year yet... I asked the professional weenie who has daddy pay for everything. 28 to 42 is the answers... So the way I see it. We will bump that to 50k. Anyone who makes more than that... They are the problem. They are not working. They are raping, robbing, and Pillaging the American People. Lie, cheat, and steal is prison time for the poor. So I am declaring all bastards making over 50k a year are criminals. You are not worth what you are stealing from us. So we are going to do everything possible to take as much of your ill-gotten gains as we can. If you do not care for and feed the poor now.... The aftermath of Katrina you watched on TV from your leather sofa will be nothing. Imagine every store in this country looted. Your house looted. Your refrigerator and cabinets cleaned out. Your valuables will be left untouched. You can't eat those. The Have's and Have Not's get farther apart everyday. It scares me. Desperation is about to kick in.

Answer 3

"...the average Joes would inundate these type of accounts probably exceeding the combined wealthier accounts' assets?" Its not only how much money is taken in, it's also how much it cost to maintain each persons account. It takes the same amount of time to receive & process your check for $500 that it takes to receive and process another persons check for $500 million. Much less expense for the hedge fund serving 50 multi million dollar accounts than serving 5,000 small accounts.

Answer 4

That's a hard return rate to find. Hedge funds are a good bet, but risky and also most are closed to small investors. Most hedge funds are looking for a million dollar plus investment. You may be better off with a laddered portfolio of mutual funds, but again 10% is going to be hard to come by, but not possible. What dollar amount do you plan to invest?

Answer 5

Why shoot for 10 when you can get 20 or more. Give the fund International Equity Index a try. Moderate risk, big returns. Check it out. Unfortunately, it is not a Hedge fund. But who cares? as long as the returns are admirable.

Answer 6

They don't get any better than Goldman Sachs so maybe this once listen to Cramer.

When you are wanting someone else to control your money it often ends in disaster. Better you should learn a little about investing a do your own thing in that realm.

Answer 7

You should read Does Your Broker Owe You Money by Daniel R. Solin. They rip you off for their own benifit.