Most hedge funds (approximately 70%) have a lifespan of three or four years. Our intention, above all else, is long-term, inter-generational survival. As someone said in 1916 in an advertisement for the Security Investment Company: “Gentlemen, if the man who invented compound interest had secured a patent on his idea, he would have had without any doubt the greatest invention the world has ever produced.”
Serious money is only made when one can invest a large portion of one’s total wealth over the long-term. It is of no use to get a spectacular one year return on an investment that is so risky, one can only invest a tiny portion of one’s portfolio.
We would obviously like to raise more money, but our focus lies in asset management. Perhaps naively at the outset, we believed that the money would immediately flow in with good returns; that people would do their research and call us up. Time will tell.