I don't know if you've ever watched the "Trader" documentary that profiled the life of thirtysomething Paul Tudor Jones, but it provides an 80s-era glimpse into world you talk about. Legend has it that PTJ bought every VHS copy and had it destroyed.
I don't know if you've ever watched the "Trader" documentary that profiled the life of thirtysomething Paul Tudor Jones, but it provides an 80s-era glimpse into world you talk about. Legend has it that PTJ bought every VHS copy and had it destroyed.
But yes. The 2 of the 2 and 20 is there because no fund manager can get the best talent without paying competitive market rates including a large part in cash to traders. Not just traders - I met a HR head in New York who told me he was taking home $440k... It's not standard of course, but I did feel (several years ago mind you) that funds raising with only the 20 part and foregoing the 2 were perceived as scammers or sub-par somehow.
The best books on the history of funds/great traders are Steve Drobny's [1] for this generation and Schwager's Market Wizards series if you want something a little further back [2]. There's a decent mix of stories - from "intrapreneurs" later backed by their own former bosses, to bootstrapping with their own capital, not everybody started with a big raise. It's also a good history of the industry and its gradual increase in sophistication.
[1] http://www.amazon.com/Steven-Drobny/e/B001JSFKO8/ref=sr_ntt_...
[2] http://www.amazon.com/Jack-D.-Schwager/e/B000AR7ZM4/ref=sr_n...