It is true : 'past performance is not indicative of future returns' ..... but it is a bloody good indication. A long track record with decent results will always outshine a short track record with very high returns.
It shows the manager can :
1. perform in good and bad market conditions.
2. manage his/her mental state - no over leveraging and revenge trading when the chips are down.
3. manage accounts, and i'm talking about back room operations - client management, accounting, audit etc.
4. manage style drift - as to not hop from system to system causing the funds to behave erratically.
5. has a solid strategy - that works i more than 1 market condition.
The manager being invested in his/her own fund ? That's also important to show the managers confidence in their own trading. Eating your own cooking, or so they say...
I do NOT manage this fund. I just work with the parent company.
Ask yourself why this fund alone is over USD100m, eventho'
1. 3 year CAGR 16% and 5 year CAGR is 20%.
2. Up front charge is 5%, even before your money is invested.
1. Track record matters - almost 15 years.
2. Survived 1 major & 2 minor market meltdowns, and going through 1 more now.
3. 10y performance annihilated the benchmark.
4. Trading simple equities, no hedging, no derivatives, no levereage.
5. This fund has also survived a changes of fund managers - Solid long term strategy is in place. I'm not saying the cook isn't important, but the recipe must be pretty damn good.
So what does this all mean ? - After reading this thread, I'll leave you to decide which person knows what they're talking about, and whos just trying to paint a pretty picture of themselves, and the rubbish they're trying to pass off for facts.