Friday, December 21, 2012

They're Here...They're Real...Introducing…The Hedge Fund Hunger Games



From Businessweek: ...The first idea that Tim Harrington, Brian Tomeo, and Spencer Deering had for a business was to gather up brand-new hedge funds and nurture them. They’d invite them to make use of their office in Miami Beach, where they could get advice, legal help, expensive software, and eventually an introduction to investors, with the three benefactors collecting a fee. The second idea, the one the trio went with, was the exact opposite. They would assemble the hedge funds and make them fight.

....A trial tournament in July proved that the mechanics of the concept worked. It also demonstrated how difficult it was to win: Tomeo entered and finished fifth out of six. For the next tournament, which they considered their real debut, the three men secured $10 million in money to manage from a capital provider in New York named Liquid Holdings Group. Winners would be chosen in three divisions. The “elite” category was for managers who were already running other people’s money. The winner here would run $5 million of the prize capital. The “professional” division was for entrants risking any amount of their own money. The winner would run $3 million. And the “launch” division was for contestants trading only on paper. There would be two winners in this division, each to be allocated $1 million....

No comments:

Post a Comment