September 30th, 2016, 3:39 pm
I have commonly seen hedge funds asking for track records with Sharpe ratios in excess of 2 from aspiring portfolio managers or quantitative traders. If I had a Sharpe of 2 I could make $500K on average risking only $250K per year. Why do traders with a few hundred K in savings and Sharpe's > 2 need to work for a hedge fund? I suppose they want to make 7 figures? Where are all the hedge funds with long-term Sharpe ratios exceeding 2?