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beachstartup | 9 years ago
rich people are susceptible to the same herd/exclusivity psychology the rest of us are.
to those who don't know, fund management firms have plenty of sales people, except they're not called sales people, they're called VPs, managing directors, partners, etc. but their job is to sell their services and bring new assets (MONEY) under management. they do this through social interaction and posturing. a lot of these people don't even actually manage the money, they just outsource it to hedge funds and banks with high end management services. they're constantly being wined and dined by bankers and traders, people they claim to hate yet they keep shoveling money in their direction. hmm.
why else do you think they have "minimum" asset requirements? there's no logical reason to have one -- once your client's money is in your pocket you can shift it around from a single pool of capital no matter how big or small the transaction. which is basically what an ETF is. there's software to keep track of all the individual deposits and returns. the truth is they market that exclusivity and they sure as hell don't want to talk with anyone who doesn't have millions of dollars. i can't say i blame them.
one thing they all have in common is they all look down their noses at "retail" financial services. it's just a big social game played by very smart people, like venture capital.
charlesdm|9 years ago