maxiep
RIP Dr. Jack
- Joined
- Sep 12, 2008
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I think they sell the bad assets at a loss and move on. Which is kinda like blowing it off in order to move on to a better investment, am I wrong?
You're wrong. First, an investor hands over their money and can't get their principal back for a specified period of time (2-10 years). Second, if you're underperforming, they're on you like white on rice. They have time and generally know other wealthy people (so word of mouth spreads quickly). If they decide to declare jihad on you and your fund, you're done. You'll never raise another fund again. I can't tell you how many times I've had to fly across the country so someone can ream me a new one and not allow me to explain my position. And if they can't get their money out early, they'll sue you.
The last thing I can do is blow someone off.
