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gelfand
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Posts: 14
Joined: July 14th, 2002, 3:00 am

Hedge funds demanding high Sharpe ratios

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?
 
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ArthurDent
Posts: 5
Joined: July 2nd, 2005, 4:38 pm

Re: Hedge funds demanding high Sharpe ratios

October 3rd, 2016, 12:39 am

By your logic, if you want to make 7 figures, you just need to wait two years. Four more years, and you are at 8 figures. Just keep in mind that trees don't grow to the sky.