Author Topic: Teen hedge fund manager - Wohl Capital  (Read 92631 times)

Schwab711

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Re: Teen hedge fund manager - Wohl Capital
« Reply #10 on: March 20, 2015, 06:26:14 PM »
Uh...so how he is a hedge fund if he's taking non-accredited investors?

No rules against it, you just can't take a % of capital gains as compensation.

Even that is possible, at least in NJ - as long as you're not registered w/state.

If that's true (I don't doubt) then it's funny how the NJ only allows it when the state of NJ has no liability. Makes sense because NJ/CT are probably trying to relax certain regulations to attract big HFs


Mephistopheles

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Re: Teen hedge fund manager - Wohl Capital
« Reply #11 on: March 20, 2015, 08:38:55 PM »
Uh...so how he is a hedge fund if he's taking non-accredited investors?

No rules against it, you just can't take a % of capital gains as compensation.

Even that is possible, at least in NJ - as long as you're not registered w/state.

If that's true (I don't doubt) then it's funny how the NJ only allows it when the state of NJ has no liability. Makes sense because NJ/CT are probably trying to relax certain regulations to attract big HFs

The whole idea that taking a performance fee can only apply to rich people is so damn ass backwards and regressive. I think everyone here agrees that performance fees align incentives much better than do management fees. If anything, it's the latter that should be restricted. Unfortunately middle class people are stuck investing with investment managers whom only have an incentive to gather assets and stay with the herd.

Schwab711

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Re: Teen hedge fund manager - Wohl Capital
« Reply #12 on: March 21, 2015, 11:56:16 AM »
Uh...so how he is a hedge fund if he's taking non-accredited investors?

No rules against it, you just can't take a % of capital gains as compensation.

Even that is possible, at least in NJ - as long as you're not registered w/state.

If that's true (I don't doubt) then it's funny how the NJ only allows it when the state of NJ has no liability. Makes sense because NJ/CT are probably trying to relax certain regulations to attract big HFs

The whole idea that taking a performance fee can only apply to rich people is so damn ass backwards and regressive. I think everyone here agrees that performance fees align incentives much better than do management fees. If anything, it's the latter that should be restricted. Unfortunately middle class people are stuck investing with investment managers whom only have an incentive to gather assets and stay with the herd.

It's funny there's interest in Senvest lately since the thinking is to prevent a situation exactly like Senvest. No clawback and no high-water mark to go with performance fees. Thus, Senvest takes on an incredibly risky portfolio and is well paid for taking on extreme risk. If everything goes great they are all rich (and investors get less than they should), however if everything goes to hell then Senvest closes up shop and changes their name.

It's extremely dishonest on Senvest's part not to include high-water or clawback (one or the other should be fine). Investor's in Senvest would be better off picking a diversified portfolio of high-beta names then pay the outrageous fees for a discount that will never be realized.
« Last Edit: March 21, 2015, 11:57:56 AM by Schwab711 »

Travis Wiedower

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Re: Teen hedge fund manager - Wohl Capital
« Reply #13 on: March 21, 2015, 01:10:03 PM »
His website also seems to be close to breaking advertisement regulations.

This was one of my first thoughts. Aren't testimonials not allowed? And I highly doubt his results chart is compliant.
My investing blog: Egregiously Cheap

ScottHall

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Re: Teen hedge fund manager - Wohl Capital
« Reply #14 on: March 21, 2015, 04:21:13 PM »
Good for a laugh, huh.

Way to go, picking on a 17-year-old who is giving it a shot. No one's putting a gun to these people's heads and forcing them to invest alongside.

He sounds like he doesn't understand much about business in his interviews, but he is young and if he keeps at it, he will learn. God forbid someone branch out and try to learn a new field.

He will make mistakes and if he sticks with it, he will learn from them as he goes. Just as all of us have. Props to him for taking a chance; when faced with putting themselves out there, most people turtle up and hide rather than risk failure.

I'd rather fail a lot and learn many new things than hide for fear of losing. That's how I learned to invest, and more recently, how I learned to write copy. You try new things, folks. There isn't a perfect blueprint out there you must follow to achieve your dreams, there's always a little bit of improvisation.

Schwab711

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Re: Teen hedge fund manager - Wohl Capital
« Reply #15 on: March 21, 2015, 04:24:12 PM »
His website also seems to be close to breaking advertisement regulations.

This was one of my first thoughts. Aren't testimonials not allowed? And I highly doubt his results chart is compliant.

No they aren't, good catch. It's pretty ballsy to put up results charts as well unless they can be audited and conservatively verified. Tough to comply with if money is flying in & out. You also need waivers for this kind of trading, in writing, from clients to do each type of trade (since he has a total of $1m I assume this applies to every client).

Schwab711

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Re: Teen hedge fund manager - Wohl Capital
« Reply #16 on: March 21, 2015, 04:25:13 PM »
Good for a laugh, huh.

Way to go, picking on a 17-year-old who is giving it a shot. No one's putting a gun to these people's heads and forcing them to invest alongside.

He sounds like he doesn't understand much about business in his interviews, but he is young and if he keeps at it, he will learn. God forbid someone branch out and try to learn a new field.

He will make mistakes and if he sticks with it, he will learn from them as he goes. Just as all of us have. Props to him for taking a chance; when faced with putting themselves out there, most people turtle up and hide rather than risk failure.

I'd rather fail a lot and learn many new things than hide for fear of losing. That's how I learned to invest, and more recently, how I learned to write copy. You try new things, folks. There isn't a perfect blueprint out there you must follow to achieve your dreams, there's always a little bit of improvisation.

Agreed, he'll have 13 years of experience at 30!

merkhet

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Re: Teen hedge fund manager - Wohl Capital
« Reply #17 on: March 21, 2015, 04:50:54 PM »
Good for a laugh, huh.

Way to go, picking on a 17-year-old who is giving it a shot. No one's putting a gun to these people's heads and forcing them to invest alongside.

He sounds like he doesn't understand much about business in his interviews, but he is young and if he keeps at it, he will learn. God forbid someone branch out and try to learn a new field.

He will make mistakes and if he sticks with it, he will learn from them as he goes. Just as all of us have. Props to him for taking a chance; when faced with putting themselves out there, most people turtle up and hide rather than risk failure.

I'd rather fail a lot and learn many new things than hide for fear of losing. That's how I learned to invest, and more recently, how I learned to write copy. You try new things, folks. There isn't a perfect blueprint out there you must follow to achieve your dreams, there's always a little bit of improvisation.

I don't think people are picking on him for the reasons you suggest. I think they are picking on him for doing things that are illegal.

cmlber

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Re: Teen hedge fund manager - Wohl Capital
« Reply #18 on: March 21, 2015, 04:58:00 PM »
Did anyone notice this on the "Strategy" page of his website:

"Leverage is key to maximizing returns. We didn't reinvent the wheel with this; it's just a tried and true strategy that works again and again."   :o


berkshire101

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Re: Teen hedge fund manager - Wohl Capital
« Reply #19 on: March 21, 2015, 05:17:46 PM »
Did anyone notice this on the "Strategy" page of his website:

"Leverage is key to maximizing returns. We didn't reinvent the wheel with this; it's just a tried and true strategy that works again and again."   :o

Only a kid genius would know and say this  ::)
I know more by standing on the shoulders of giants or however the old saying goes.