Seekingalpha.com – First, the veteran can lose money just as easily as the rookie.

Second, and more perniciously, just because a young money manager has been humbled does not mean he now shares your thinking about risk. And in a few years’ time, when young hedge fund managers are back raising money for new funds, and they boldly advertise "I’ve learned my lesson," don’t be so quick to believe them.

The game of institutional investment management (especially for family offices) is largely about the Old and the Rich entrusting their capital to the Young and the Poor. But as every older person, no matter how wealthy, knows, the young will always be richer in the one thing that matters most–time. It’s perfectly rational for a younger person to take more financial risks because if things don’t work out he can always start over.

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Tags: game, hedge-fund-managers, institutional investment management, money manager, raising-money, risk, veteran