Jack Schwager — in an interview for his highly insightful book Hedge Fund Market Wizards — asked GMT Capital (multi-billion dollar money management firm) founder Tom Claugus about his early years as a hedge fund manager.
We entirely sympathize with his response; which describes plain and simply why we decline all requests to manage short-horizon portfolios:
“The responsibility of having other people’s money really weighed on me. If you have a 10-year time horizon, you can make good decisions and make a lot of money. If you have a three-year time horizon, you could probably still do well. But if you have only a three-month time horizon, anything can happen.”