Lack of HNW in the Area

[Anonymous]

Anonymous wrote:

Anonymous wrote:
I prefer to handpick my own individual stocks, but tell me about this 20%+ return.

And yes, there is no culture of angel investing here. You should have known this about DC before you moved!

I had presumed with all the contractor money swooshing around, there would be more 8 figure potential clients. But I guess the "wealth" is spread pretty evenly.

I notice OP doesn't address the 7 year 20%+ returns.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Having moved to the area from the bay area, I thought there would be some angel capital and wealth management scene in the area. But it turns out that the "rich" here basically have a house half paid down and a couple of million in savings invested in vanguard index funds. I had just recently registered a RIA and manage a couple of million in AUM (friends/family) in separate accounts with a 7 year track record of 20%+ returns but it is impossible to convince people in the area that that they should invest in anything outside of a vanguard index fund. Maybe it is just the inherent conservatism of feds and the fact that most wealth is locked up in 401k accounts.

For background, I have 5 years of experience in growth private equity, 3 years in a hedge fund, am a CFA charterholder and have been investing since I was 21. I am considering moving to Palm Beach or La Jolla.

A 7 year record of 20% returns is pretty poor.

Perhaps you could open a restaurant?

that is obviously annualized

Obviously.

And still obviously pretty poor.

[Anonymous]

Anonymous wrote:Having moved to the area from the bay area, I thought there would be some angel capital and wealth management scene in the area. But it turns out that the "rich" here basically have a house half paid down and a couple of million in savings invested in vanguard index funds. I had just recently registered a RIA and manage a couple of million in AUM (friends/family) in separate accounts with a 7 year track record of 20%+ returns but it is impossible to convince people in the area that that they should invest in anything outside of a vanguard index fund. Maybe it is just the inherent conservatism of feds and the fact that most wealth is locked up in 401k accounts.

For background, I have 5 years of experience in growth private equity, 3 years in a hedge fund, am a CFA charterholder and have been investing since I was 21. I am considering moving to Palm Beach or La Jolla.

Nope. Not a boring fed who is only doing Vanguard index funds. I invest plenty with the goal of beating the S&P every year. You know what I won't do though -- turn my money over to someone who is managing friend and family money as a side business. No one knows you. No one knows whether your PE shop and hedge fund that you worked for were the real deal or some rich individual who one day decided -- hey, I'm opening a hedge fund. Why would anyone trust you?

[Anonymous]

Anonymous wrote:So you are someone who doesn't do a lot of research and gets returns that are comparable to the index funds you look down on? cool story.

I don't look down at index funds. I put my parent's 401k in them and I recommend them for most people. In fact I got started reading graham and buffett newsletters and I have worked largely for value shops. It is just that I like to do this for a living and I had been pretty good at it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Having moved to the area from the bay area, I thought there would be some angel capital and wealth management scene in the area. But it turns out that the "rich" here basically have a house half paid down and a couple of million in savings invested in vanguard index funds. I had just recently registered a RIA and manage a couple of million in AUM (friends/family) in separate accounts with a 7 year track record of 20%+ returns but it is impossible to convince people in the area that that they should invest in anything outside of a vanguard index fund. Maybe it is just the inherent conservatism of feds and the fact that most wealth is locked up in 401k accounts.

For background, I have 5 years of experience in growth private equity, 3 years in a hedge fund, am a CFA charterholder and have been investing since I was 21. I am considering moving to Palm Beach or La Jolla.

A 7 year record of 20% returns is pretty poor.

Perhaps you could open a restaurant?

that is obviously annualized

Obviously.

And still obviously pretty poor.

I'm not the OP and think the OP sounds like a bit of a doofus to be honest, but what are you smoking? 20+% annualized over the last 7 years is darn good. The S&P 500, with dividends reinvested, returned an annualized 13% from 2011 through the end of 2017. https://dqydj.com/sp-500-return-calculator/

Beating the market by that much, if true, is very good return.

[Anonymous]

Congrats?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Having moved to the area from the bay area, I thought there would be some angel capital and wealth management scene in the area. But it turns out that the "rich" here basically have a house half paid down and a couple of million in savings invested in vanguard index funds. I had just recently registered a RIA and manage a couple of million in AUM (friends/family) in separate accounts with a 7 year track record of 20%+ returns but it is impossible to convince people in the area that that they should invest in anything outside of a vanguard index fund. Maybe it is just the inherent conservatism of feds and the fact that most wealth is locked up in 401k accounts.

For background, I have 5 years of experience in growth private equity, 3 years in a hedge fund, am a CFA charterholder and have been investing since I was 21. I am considering moving to Palm Beach or La Jolla.

Nope. Not a boring fed who is only doing Vanguard index funds. I invest plenty with the goal of beating the S&P every year. You know what I won't do though -- turn my money over to someone who is managing friend and family money as a side business. No one knows you. No one knows whether your PE shop and hedge fund that you worked for were the real deal or some rich individual who one day decided -- hey, I'm opening a hedge fund. Why would anyone trust you?

+1. There isn't a lack of high net worth here. There IS however enough education and sophistication that people aren't going to fall for some hobbyist investment adviser.

[Anonymous]

Anonymous wrote:

Anonymous wrote:So you are someone who doesn't do a lot of research and gets returns that are comparable to the index funds you look down on? cool story.

I don't look down at index funds. I put my parent's 401k in them and I recommend them for most people. In fact I got started reading graham and buffett newsletters and I have worked largely for value shops. It is just that I like to do this for a living and I had been pretty good at it.

Anyone who started an investment shop after March 2009 has been "pretty good at it". You'd have to try really, really hard to actually lose money over the past eight years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Having moved to the area from the bay area, I thought there would be some angel capital and wealth management scene in the area. But it turns out that the "rich" here basically have a house half paid down and a couple of million in savings invested in vanguard index funds. I had just recently registered a RIA and manage a couple of million in AUM (friends/family) in separate accounts with a 7 year track record of 20%+ returns but it is impossible to convince people in the area that that they should invest in anything outside of a vanguard index fund. Maybe it is just the inherent conservatism of feds and the fact that most wealth is locked up in 401k accounts.

For background, I have 5 years of experience in growth private equity, 3 years in a hedge fund, am a CFA charterholder and have been investing since I was 21. I am considering moving to Palm Beach or La Jolla.

A 7 year record of 20% returns is pretty poor.

Perhaps you could open a restaurant?

that is obviously annualized

Obviously.

And still obviously pretty poor.

I'm not the OP and think the OP sounds like a bit of a doofus to be honest, but what are you smoking? 20+% annualized over the last 7 years is darn good. The S&P 500, with dividends reinvested, returned an annualized 13% from 2011 through the end of 2017. https://dqydj.com/sp-500-return-calculator/

Beating the market by that much, if true, is very good return.

No, it isn't, because it's just the upside years.

What about 10:years?

Or 20?

Why did OP just share his 7-year performance?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So you are someone who doesn't do a lot of research and gets returns that are comparable to the index funds you look down on? cool story.

I don't look down at index funds. I put my parent's 401k in them and I recommend them for most people. In fact I got started reading graham and buffett newsletters and I have worked largely for value shops. It is just that I like to do this for a living and I had been pretty good at it.

Anyone who started an investment shop after March 2009 has been "pretty good at it". You'd have to try really, really hard to actually lose money over the past eight years.

Chelsea's husband is such a genius.

He lost all his and his investors money betting on Greek debt.

Fool.

[Anonymous]

Bernie Madoff, who let you out of the clink?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Having moved to the area from the bay area, I thought there would be some angel capital and wealth management scene in the area. But it turns out that the "rich" here basically have a house half paid down and a couple of million in savings invested in vanguard index funds. I had just recently registered a RIA and manage a couple of million in AUM (friends/family) in separate accounts with a 7 year track record of 20%+ returns but it is impossible to convince people in the area that that they should invest in anything outside of a vanguard index fund. Maybe it is just the inherent conservatism of feds and the fact that most wealth is locked up in 401k accounts.

For background, I have 5 years of experience in growth private equity, 3 years in a hedge fund, am a CFA charterholder and have been investing since I was 21. I am considering moving to Palm Beach or La Jolla.

Nope. Not a boring fed who is only doing Vanguard index funds. I invest plenty with the goal of beating the S&P every year. You know what I won't do though -- turn my money over to someone who is managing friend and family money as a side business. No one knows you. No one knows whether your PE shop and hedge fund that you worked for were the real deal or some rich individual who one day decided -- hey, I'm opening a hedge fund. Why would anyone trust you?

+1. There isn't a lack of high net worth here. There IS however enough education and sophistication that people aren't going to fall for some hobbyist investment adviser.

I completely understand that trust is an issue which is why I run separate accounts instead of a fund. The account is under IB and entirely in the client's name and I cannot move the capital at all in/out and can only allocate the capital. Also clients can leave anytime save for a 1.5% exit fee.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Having moved to the area from the bay area, I thought there would be some angel capital and wealth management scene in the area. But it turns out that the "rich" here basically have a house half paid down and a couple of million in savings invested in vanguard index funds. I had just recently registered a RIA and manage a couple of million in AUM (friends/family) in separate accounts with a 7 year track record of 20%+ returns but it is impossible to convince people in the area that that they should invest in anything outside of a vanguard index fund. Maybe it is just the inherent conservatism of feds and the fact that most wealth is locked up in 401k accounts.

For background, I have 5 years of experience in growth private equity, 3 years in a hedge fund, am a CFA charterholder and have been investing since I was 21. I am considering moving to Palm Beach or La Jolla.

Nope. Not a boring fed who is only doing Vanguard index funds. I invest plenty with the goal of beating the S&P every year. You know what I won't do though -- turn my money over to someone who is managing friend and family money as a side business. No one knows you. No one knows whether your PE shop and hedge fund that you worked for were the real deal or some rich individual who one day decided -- hey, I'm opening a hedge fund. Why would anyone trust you?

+1. There isn't a lack of high net worth here. There IS however enough education and sophistication that people aren't going to fall for some hobbyist investment adviser.

THIS

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Having moved to the area from the bay area, I thought there would be some angel capital and wealth management scene in the area. But it turns out that the "rich" here basically have a house half paid down and a couple of million in savings invested in vanguard index funds. I had just recently registered a RIA and manage a couple of million in AUM (friends/family) in separate accounts with a 7 year track record of 20%+ returns but it is impossible to convince people in the area that that they should invest in anything outside of a vanguard index fund. Maybe it is just the inherent conservatism of feds and the fact that most wealth is locked up in 401k accounts.

For background, I have 5 years of experience in growth private equity, 3 years in a hedge fund, am a CFA charterholder and have been investing since I was 21. I am considering moving to Palm Beach or La Jolla.

A 7 year record of 20% returns is pretty poor.

Perhaps you could open a restaurant?

that is obviously annualized

Obviously.

And still obviously pretty poor.

I'm not the OP and think the OP sounds like a bit of a doofus to be honest, but what are you smoking? 20+% annualized over the last 7 years is darn good. The S&P 500, with dividends reinvested, returned an annualized 13% from 2011 through the end of 2017. https://dqydj.com/sp-500-return-calculator/

Beating the market by that much, if true, is very good return.

No, it isn't, because it's just the upside years.

What about 10:years?

Or 20?

Why did OP just share his 7-year performance?

Because I only started investing 8 years ago, and with only sizable capital 7 years ago. I don't think I can lump the small 500k student endowment i was managing in University together as my "performance"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Having moved to the area from the bay area, I thought there would be some angel capital and wealth management scene in the area. But it turns out that the "rich" here basically have a house half paid down and a couple of million in savings invested in vanguard index funds. I had just recently registered a RIA and manage a couple of million in AUM (friends/family) in separate accounts with a 7 year track record of 20%+ returns but it is impossible to convince people in the area that that they should invest in anything outside of a vanguard index fund. Maybe it is just the inherent conservatism of feds and the fact that most wealth is locked up in 401k accounts.

For background, I have 5 years of experience in growth private equity, 3 years in a hedge fund, am a CFA charterholder and have been investing since I was 21. I am considering moving to Palm Beach or La Jolla.

A 7 year record of 20% returns is pretty poor.

Perhaps you could open a restaurant?

that is obviously annualized

Obviously.

And still obviously pretty poor.

I'm not the OP and think the OP sounds like a bit of a doofus to be honest, but what are you smoking? 20+% annualized over the last 7 years is darn good. The S&P 500, with dividends reinvested, returned an annualized 13% from 2011 through the end of 2017. https://dqydj.com/sp-500-return-calculator/

Beating the market by that much, if true, is very good return.

No, it isn't, because it's just the upside years.

What about 10:years?

Or 20?

Why did OP just share his 7-year performance?

Because I only started investing 8 years ago, and with only sizable capital 7 years ago. I don't think I can lump the small 500k student endowment i was managing in University together as my "performance"

Please, tell me more about your amazing returns!