Lack of HNW in the Area

[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.

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.

I'm the one who posted on the trust issue. Yeah -- I would NEVER even consider this -- and I'm NOT someone who only believes in Vanguard's index funds. Don't know you. Don't know your real track record -- it is VERY easy to doctor that. And frankly I know this space well enough that why would I give you the ability to allocate my capital, not to mention pay you a % management fee and an exit fee? I have enough financial acumen myself -- and yes I do beat the S&P and no I wouldn't just put money in an index and nothing else.

And I have the ability to shop around for clients, and you are clearly not in my pipeline. My two non-family/friend client demand proof from my personal account and that I run 90% of my own liquid networth in the same way, with the exact same allocation and strategy and performance and that was proof enough that I was the real thing. You sound like an insecure prick who likes to be on a high horse and, why the heck would anyone want to work with you or take your capital.

First you moan about the lack of "HNW" individuals in this town and then you call one names. I'm not thinking you're used to dealing with "HNW" people.

LOL. This. You realize that HNW folks have LOTS of investment options -- some good, some bad. You need to sell to them to convince them that you are the truth, the light and the way. So when someone says "why would I invest with you, I have financial acumen and I don't know you" -- which non family/non friend/HNW people who aren't connected with your friends/family WILL say as they do their diligence -- if your response is "you're an insecure prick, and I don't want your capital anyway" -- well that right there tells us why you have TWO clients in a 9 year bull market despite a 20% annualized return.

[Anonymous]

The hardest part of this job is capital raising. Doesn't matter how good your returns are, if no one will invest with you because they don't know you or trust your or whatever. Figure out why you aren't able to raise capital -- which DOES exist in DC, NYC, and every east coast metro area. I'm thinking it's because you come across like a shady grifter with an investment hobby.

[Anonymous]

Anonymous wrote:

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.

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.

I'm the one who posted on the trust issue. Yeah -- I would NEVER even consider this -- and I'm NOT someone who only believes in Vanguard's index funds. Don't know you. Don't know your real track record -- it is VERY easy to doctor that. And frankly I know this space well enough that why would I give you the ability to allocate my capital, not to mention pay you a % management fee and an exit fee? I have enough financial acumen myself -- and yes I do beat the S&P and no I wouldn't just put money in an index and nothing else.

And I have the ability to shop around for clients, and you are clearly not in my pipeline. My two non-family/friend client demand proof from my personal account and that I run 90% of my own liquid networth in the same way, with the exact same allocation and strategy and performance and that was proof enough that I was the real thing. You sound like an insecure prick who likes to be on a high horse and, why the heck would anyone want to work with you or take your capital.

First you moan about the lack of "HNW" individuals in this town and then you call one names. I'm not thinking you're used to dealing with "HNW" people.

LOL. This. You realize that HNW folks have LOTS of investment options -- some good, some bad. You need to sell to them to convince them that you are the truth, the light and the way. So when someone says "why would I invest with you, I have financial acumen and I don't know you" -- which non family/non friend/HNW people who aren't connected with your friends/family WILL say as they do their diligence -- if your response is "you're an insecure prick, and I don't want your capital anyway" -- well that right there tells us why you have TWO clients in a 9 year bull market despite a 20% annualized return.

If I was any good at marketing I would be in institutional sales and not investment research. And in fact it was one client who then referred to the other. So really, I have one "outside" client. Again, I have a cushy high paying investment research job so I am not interested in transitioning to full time.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

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.

I'm the one who posted on the trust issue. Yeah -- I would NEVER even consider this -- and I'm NOT someone who only believes in Vanguard's index funds. Don't know you. Don't know your real track record -- it is VERY easy to doctor that. And frankly I know this space well enough that why would I give you the ability to allocate my capital, not to mention pay you a % management fee and an exit fee? I have enough financial acumen myself -- and yes I do beat the S&P and no I wouldn't just put money in an index and nothing else.

And I have the ability to shop around for clients, and you are clearly not in my pipeline. My two non-family/friend client demand proof from my personal account and that I run 90% of my own liquid networth in the same way, with the exact same allocation and strategy and performance and that was proof enough that I was the real thing. You sound like an insecure prick who likes to be on a high horse and, why the heck would anyone want to work with you or take your capital.

First you moan about the lack of "HNW" individuals in this town and then you call one names. I'm not thinking you're used to dealing with "HNW" people.

LOL. This. You realize that HNW folks have LOTS of investment options -- some good, some bad. You need to sell to them to convince them that you are the truth, the light and the way. So when someone says "why would I invest with you, I have financial acumen and I don't know you" -- which non family/non friend/HNW people who aren't connected with your friends/family WILL say as they do their diligence -- if your response is "you're an insecure prick, and I don't want your capital anyway" -- well that right there tells us why you have TWO clients in a 9 year bull market despite a 20% annualized return.

If I was any good at marketing I would be in institutional sales and not investment research. And in fact it was one client who then referred to the other. So really, I have one "outside" client. Again, I have a cushy high paying investment research job so I am not interested in transitioning to full time.

Actually, I have a side-gig in marketing. You could hire me. But I only have 9 clients.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

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.

I'm the one who posted on the trust issue. Yeah -- I would NEVER even consider this -- and I'm NOT someone who only believes in Vanguard's index funds. Don't know you. Don't know your real track record -- it is VERY easy to doctor that. And frankly I know this space well enough that why would I give you the ability to allocate my capital, not to mention pay you a % management fee and an exit fee? I have enough financial acumen myself -- and yes I do beat the S&P and no I wouldn't just put money in an index and nothing else.

And I have the ability to shop around for clients, and you are clearly not in my pipeline. My two non-family/friend client demand proof from my personal account and that I run 90% of my own liquid networth in the same way, with the exact same allocation and strategy and performance and that was proof enough that I was the real thing. You sound like an insecure prick who likes to be on a high horse and, why the heck would anyone want to work with you or take your capital.

First you moan about the lack of "HNW" individuals in this town and then you call one names. I'm not thinking you're used to dealing with "HNW" people.

LOL. This. You realize that HNW folks have LOTS of investment options -- some good, some bad. You need to sell to them to convince them that you are the truth, the light and the way. So when someone says "why would I invest with you, I have financial acumen and I don't know you" -- which non family/non friend/HNW people who aren't connected with your friends/family WILL say as they do their diligence -- if your response is "you're an insecure prick, and I don't want your capital anyway" -- well that right there tells us why you have TWO clients in a 9 year bull market despite a 20% annualized return.

If I was any good at marketing I would be in institutional sales and not investment research. And in fact it was one client who then referred to the other. So really, I have one "outside" client. Again, I have a cushy high paying investment research job so I am not interested in transitioning to full time.

So you're admitting you're not good at marketing and clearly this is a small side gig as you have a cushy job anyway. So keep it a side gig with your 1-2 clients and grow it through referrals if you can. If not, you have your job anyway. So what are you complaining about??

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

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.

I'm the one who posted on the trust issue. Yeah -- I would NEVER even consider this -- and I'm NOT someone who only believes in Vanguard's index funds. Don't know you. Don't know your real track record -- it is VERY easy to doctor that. And frankly I know this space well enough that why would I give you the ability to allocate my capital, not to mention pay you a % management fee and an exit fee? I have enough financial acumen myself -- and yes I do beat the S&P and no I wouldn't just put money in an index and nothing else.

And I have the ability to shop around for clients, and you are clearly not in my pipeline. My two non-family/friend client demand proof from my personal account and that I run 90% of my own liquid networth in the same way, with the exact same allocation and strategy and performance and that was proof enough that I was the real thing. You sound like an insecure prick who likes to be on a high horse and, why the heck would anyone want to work with you or take your capital.

First you moan about the lack of "HNW" individuals in this town and then you call one names. I'm not thinking you're used to dealing with "HNW" people.

LOL. This. You realize that HNW folks have LOTS of investment options -- some good, some bad. You need to sell to them to convince them that you are the truth, the light and the way. So when someone says "why would I invest with you, I have financial acumen and I don't know you" -- which non family/non friend/HNW people who aren't connected with your friends/family WILL say as they do their diligence -- if your response is "you're an insecure prick, and I don't want your capital anyway" -- well that right there tells us why you have TWO clients in a 9 year bull market despite a 20% annualized return.

If I was any good at marketing I would be in institutional sales and not investment research. And in fact it was one client who then referred to the other. So really, I have one "outside" client. Again, I have a cushy high paying investment research job so I am not interested in transitioning to full time.

So you're admitting you're not good at marketing and clearly this is a small side gig as you have a cushy job anyway. So keep it a side gig with your 1-2 clients and grow it through referrals if you can. If not, you have your job anyway. So what are you complaining about??

So, first of all, I am not a hobbyist, I have been managing institutional capital for close to a decade. I am not complaining, simply lamenting the lack of a client pipeline in the DC region. I was meeting potential clients at least once a month in CA to go over track record, strategy, case studies. There just aren't many people with that type of disposable income in this area. But again, I am in no rush, I already have achieved some degree of financial freedom.

[Anonymous]

Lol is this for real?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

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.

I'm the one who posted on the trust issue. Yeah -- I would NEVER even consider this -- and I'm NOT someone who only believes in Vanguard's index funds. Don't know you. Don't know your real track record -- it is VERY easy to doctor that. And frankly I know this space well enough that why would I give you the ability to allocate my capital, not to mention pay you a % management fee and an exit fee? I have enough financial acumen myself -- and yes I do beat the S&P and no I wouldn't just put money in an index and nothing else.

And I have the ability to shop around for clients, and you are clearly not in my pipeline. My two non-family/friend client demand proof from my personal account and that I run 90% of my own liquid networth in the same way, with the exact same allocation and strategy and performance and that was proof enough that I was the real thing. You sound like an insecure prick who likes to be on a high horse and, why the heck would anyone want to work with you or take your capital.

First you moan about the lack of "HNW" individuals in this town and then you call one names. I'm not thinking you're used to dealing with "HNW" people.

LOL. This. You realize that HNW folks have LOTS of investment options -- some good, some bad. You need to sell to them to convince them that you are the truth, the light and the way. So when someone says "why would I invest with you, I have financial acumen and I don't know you" -- which non family/non friend/HNW people who aren't connected with your friends/family WILL say as they do their diligence -- if your response is "you're an insecure prick, and I don't want your capital anyway" -- well that right there tells us why you have TWO clients in a 9 year bull market despite a 20% annualized return.

If I was any good at marketing I would be in institutional sales and not investment research. And in fact it was one client who then referred to the other. So really, I have one "outside" client. Again, I have a cushy high paying investment research job so I am not interested in transitioning to full time.

So you're admitting you're not good at marketing and clearly this is a small side gig as you have a cushy job anyway. So keep it a side gig with your 1-2 clients and grow it through referrals if you can. If not, you have your job anyway. So what are you complaining about??

So, first of all, I am not a hobbyist, I have been managing institutional capital for close to a decade. I am not complaining, simply lamenting the lack of a client pipeline in the DC region. I was meeting potential clients at least once a month in CA to go over track record, strategy, case studies. There just aren't many people with that type of disposable income in this area. But again, I am in no rush, I already have achieved some degree of financial freedom.

It sounds like you know what you need to do. Have fun in sunny California!

[Anonymous]

I call troll. Works in research but didn't do basic market research. Beep, move on.

[Anonymous]

You really think that Palm Beach is where you should go next? After how much money was lost to Madoff you really think you can show up and get new clients? Thats such an insular community, they *knew* the guy and still got fleeced. You have no chance.

[Anonymous]

I’m interested in your investment meant strategy, though.

[Anonymous]

I am doubting that OP has passed the CFA. She seems to have skipped the ethics section.

Also, do tell where you have a cushy investment research job in DC. Aren’t many of those around here.

[Anonymous]

This is a weird post.

Reason #1 not to invest with this person is that s/he spends hours trolling an urban mommy forum. Freako.