Hedge Fund Returns Have Been So Bad Lately, Says Old Man, I Can Do Better

old men

Photo: Riverside UK

Daniel Maarsman, a 76-year-old man who lives in Arizona, is starting a hedge fund because he’s seen hedge fund returns lately, and they are so God awful, he says, that he believes there’s no chance that he can’t do better.”I want to see people make some decent money,” he told the Desert Sun. “I can’t believe the lousy returns (on many funds).”

Maarsman made his living as an entrepreneur before the idea hit him six months ago. In his younger days, he started a successful trucking company, and later a consulting business.

He thinks starting a hedge fund will be just like starting any company, so even though he knows nothing about the market, he’ll beat the returns he’s been seeing in the industry lately and make his investors some decent money.

How?

“When I do research, I do it entirely differently,” he says.

His strategy isn’t actually that wild – it’s to research companies’ accounting strategies, competition, etc, and to invest about 60 per cent in pubic companies, 25 per cent in private companies, 10 per cent in commodities and 5 per cent in convertible bonds. It’s just naive, maybe.

Maarsman told the Sun that he subscribes to 10 market letters, so he will combine analysts’ recommendations with his entrepreneurial insight to choose corporate turnaround opportunities.

The man thinks he and the newsletters he subscribes to can do better. See what we mean about naive?

All the best to him, but Marsmaan’s plan is pretty ironic given the number of legendary hedge fund managers half his age who have been retiring from the business because they can’t find enough to invest in.

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