Wednesday, May 18, 2005

Hedge fund in a garage

Behind the hedge fund facade - the usual herd
The hedge fund community has built a mystique that is both a marketing tool and a barrier to industry entry. Part secrecy, part intellect and part an aggressive appetite for risk, this mystique speaks to the observer of the inherent superiority of the hedge fund manager. He may not be able to master the markets but the odds are loaded in his favour by virtue of nature and nurture. Or so his marketing pitch might subliminally encourage you to believe.


The private day trader has no such aura of invincibility or even of respectability. Alone with his broadband connection and mobile phone, he relies on a series of market sources to give him some small edge in his battle against the big money.