Blunt advice for emerging managers at SALT
By Lawrence Delevingne
Tue May 14, 2013
Fortress, Larch Lane, Perella and Protégé weigh in. It's a treacherous path to hedge fund success. "At $100 million, you're still nothing…you're taking the Jitney, not the helicopter, to the Hamptons."
LAS VEGAS -- Up-and-coming hedge fund managers received some
frank advice at the SkyBridge Alternatives Conference late last
week: you probably won't make it and it'll be hard going before
"I would urge small managers to think about why they're in
the business. It shouldn't be about your ego or celebrity or
anything like that. It should be about compounding for
investors," said Stu Bohart,
president of liquid markets at $53.4 billion Fortress
Investment Group on a panel titled "Emerging Manager
Advantages: The Benefits & Pitfalls of Early Stage
"At $100 million, you're still nothing. It sounds good in a
bar, maybe, but you're taking the
Jitney, not the helicopter, out to the Hamptons," Bohart
Others agreed. "Emerging managers are spending maybe sixty
to seventy percent on their portfolio and that's it. The
balance is spent on the business," said Jeffrey Silverman,
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