He beats our picks?
8/23/03 Someone
with a better performance record than our investment newsletter's
model portfolios? Yes, but check out his performance fee.
Who are we talking about? He is Steve Cohen, manager
of the SAC hedge fund (named using his initials). A 7/21/2003 article
in Business Week states that his firm "routinely accounts for
as much as 3% of the NYSE's average daily trading", and his
performance is at least 40% annually. However, that's before his
50% performance fee.
I recommend reading the article if you have a
chance. It's a fascinating look inside the pressure-filled world
of hedge funds along with the large egos that go with it.
By the way, through the first half of this year,
his fund is up 14%, but that is before fees. Over the same
time period, our picks were up 18.9%, and the S&P 500
was up 11%. So if you can withstand the risk of a hedge fund
and don't mind 50% performance fees, go for it. For the rest
of you, we'll be here to provide you with our recommendations.
Just don't forget to calculate fees into your bottom-line
performance figures.
-Rex M. Jacobsen
Sr. Editor
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