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Hedge Fund Manager Looking to Take Strategy Ideas?

Has anyone else ever been approached by someone claiming to run a hedge fund? This person reached out to me and asked to talk. We had a few conversations that seemed very nice. They subscribed to my strategy and were very complimentary then shortly after they became unresponsive and unsubscribed.

From my online research it seems like this person may indeed run a hedge fund but who knows. I would never give the inner workings of my strategies away and didn’t in the conversations we had. However, it makes me wonder if that was all he was after. Hopefully this was not the case, but I would be interested to know if anyone else has had similar experiences.

I haven’t been approached by anyone specifically but I have noticed a couple of my subscribers have email domains that are from financial services companies. It’s always made me wonder.

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C2 does share C2 strategies with third party money managers looking for profitable trading systems (with the C2 vendor’s permission). C2 vendors are of course fully paid when these money managers use their systems.

So I guess the extra traffic and interest some successful C2 developers are getting are coming from these money managers.

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I was recently contacted by an individual claiming something similar. I asked for a website to review. I couldn’t tell if they were legitimate and I am waiting on a response.

-Brian

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I have worked for various hedge funds and they are typically notoriously cagey about their strategies, so I doubt any serious fund would be interested in outside systems from a retail based website with mostly unknown and inexperienced developers. Not saying there can’t be great strategies on C2, just that when managing opm in a heavily scrutinized field, the due diligence and fiduciary responsibilities are very comprehensive

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I was approached on C2 from someone in South Africa stating they were a hedge fund begging and pleading. They are legit.

I believe this was the same person since you mentioned South Africa. They definitely seemed legit to me. Perhaps they just decided they don’t like my methods.

I just thought they were impulsive or wish washy.

And why not?

May I remind you that more than 80% of fund managers cannot even trail the S&P 500, let alone beat it, while some C2 strategies deliver double digit return per month?

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Managing multi billion dollars is very different than ‘trading’ an imaginary system on C2 with very little money on the line (zero in most cases) and no market impact

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You mean to tell us that money managers cannot make money trading the best C2 strategies, the ones that use very liquid financial instruments like the emini S&P 500?

And I am not talking about starting with the “suggested minimum trading capital”, but using the trading signals on much much bigger trading accounts.

Can they? Yeah maybe… will they? I highly doubt it. If you have a great strategy you have a better chance starting your own fund that hoping an established one will pick you up

And why not? Any particular reason?

They have their internal analysts, portfolio managers, coders, scientists etc… making tons of money and are extremely protective over their jobs. Looking for systems outside of the fund is basically admitting that they can’t do their jobs and become obsolete. Look at all the actively managed long only funds out there that can’t keep up with their benchmark, wouldn’t it make more sense for them to just follow the S&P? of course, but then the big earning employees loose their jobs. All I am saying is that there are many much bigger forces at play than just performance, but hey if you get the chance to lease your system out to a fund and get a % of the fees, then awesome…Btw, not trying to start a fight, just voicing my opinion based on 20+ years on the institutional side

Unfortunately (see post above) that money goes into their pocket, the customers are left with subpar performance that a simple index fund can easily beat.

I am talking about the owner of the fund. Why would he ignore and not trade superior (C2) trading systems that produce less drawdown, if only for diversification purposes?

True, because the primary goal of most money managers is to collect big fees, not to beat any benchmark. Sad but true.

I never saw it that way, we are just exchanging ideas, that’s all.

Cordially.

The multibillion-dollar fund is divided into at least 100-200, or even 300-400-500 strategies, which bring different results, and on average for the “hospital” the final result is obtained. 1 strategy received - 50% per year, 2 strategy 0%, 3 strategy profit + 70%. The fund will report on profit for the year + 6.7%. (simple example) For example, 1 billion is 1000K USD 100 strategies on average for each strategy 10 million plus or minus. In these 100 strategies, 5-10 strategies can be C2. Is quite real.

Well hope I am wrong and you are right, I manage a fully systematic ES strategy in the swing spectrum and it would be heck of a lot simpler to get picked up by a fund than to start my own, which is what the plan was

Starting a fund is extremely complicated and requires serious (and hard to get) venture capital.

And of course you need to have a solid, verified trading record if you want to attract investors.

Building a track record on C2 (and other similar websites) is a good start.
Best wishes.

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