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One hedge fund he manages with his partner, Steven A. Van Dyke, had a net return of 12.5percentt in 2001, according to Hedgefundnews.com.
His biggest fund, Millennium International, had a net return of 9.7percentt last year, according to the Offshore Fund Directory, and was up 7.75percentthroughgh August, according to an executive with knowledge of its performance.
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So if rates rose half of a percentage point in the coming year, to 3percentt, you would have a net return of virtually nothing.
"It would cost about $1,800 to ensure that the portfolio is worth at least $80,000 through the option's expiration date" of Dec. 17, he said, so, if the market indeed rose 8 percent, an investor who has spent $1,800, or 1.8 percent, for a put would have a net return of 6 percent, still far more than he would have had in money markets or short-term notes.
Outside that tax shelter, middle-class savers who pay a marginal tax rate of 40% would have earned a net return of 6.6%.
The TASS Fund of Fund Universe Average had an annualized net return of 8.25percentt from 1996 through 2002, forming a good representation of what actual dollars have earned in hedge funds over the period.
The fund has had a net internal rate of return of negative 12.8percentt from its inception through the end of September, according to someone with direct knowledge of its performance who was not authorized to release the data.
Its 2005 fund had a net internal rate of return (IRR) of -34.3% as of March.
Blackstone's 2003 buy-out fund had a net internal rate of return (IRR) of nearly 40%.
Walt Disney had a net worth of $5 billion.
It says investors in total have earned €26.7 million in interest through loans to individuals and businesses and have attained an average net return of nearly 12percentt.
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