You'll probably never get rich selling CRATs or rollover IRAs. But here's the good news. Anybody who can get pension fund managers or Bentley owners to hand over some money can start a hedge fund.
The rewards can be enormous. Last year, according to this New York Times report ($$$) a top 26 hedge fund manager (there was a tie at the bottom of the top-25 list) made at least $130 million. That's up from a minimum of $100 million in 2004.
The average guy in the top 26 for 2005 made $363 million!
The highest-paid? James Simon of Renaissance Technologies, at $1.5 billion.
No special training or credentials are required to manage a hedge fund, though it does help to live in or near Greenwich, CT. Most important, you have to know how to dress the part. That's why you need to pick up a copy of today's Wall Street Journal or check out Hedge Fund Chic via your online subscription.
Two rules to remember:
1. Ditch your briefcase and get a messenger bag . (This may be a NYC thing; the bags were popularized by the city's rampaging bicycle messengers.) The Adobe model shown here would be especially cool if your fund is going to focus on creative areas such as media.
2. Ditch your suits in favor of neatly pressed slacks and dress shirts. If you can afford it, look for labels like Ermenegildo Zegna, Armani Collezioni and Incotex. If you can't, go Lands' End.
The Journal's article offers no specific tips for women. Probably aren't any women among the top 25. Hedge funds are all about Alpha, and what woman wants to act like an Alpha Male?