I have the opposite problem — my strategies are scalable up to some AUM, and I am constantly looking for ways to raise this limit, meanwhile rejecting new clients :)
I'm in the tech heavy and completely unscalable space. It fits my personality a lot better, but that's why we're not a hedge fund.
Yep, you are in HFT. I don't have the means to compete in traditional HFT, but I am trying to be the fastest guy in Bitcoin venues. :)
You can lose your deferred compensation, which is very common at both hedge funds and banks once you start earning more money.
> Thankfully, now it is easier than ever — just show that you can consistently earn money by trading, and you'll get calls.
Have you ever tried raising institutional money? It's not that easy even if you have a good track record. Many times it will come under extremely investor friendly terms and often it will be a SMA rather than an actual investment. Of course you can raise millions of F&F money, but the economics for most strategies don't work out until you get into the 9 figure range.