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."


Ted Seides
(Photo: Bloomberg)

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 you do.

"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 Investing."

"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 said.

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, partner and...

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