Yesterday was a special day for me—I turned nine! My birthday was celebrated in style at the town hall, all thanks to Mayor Jess Orndorff, who personally organized the event. It was a gesture that showed just how much respect my father has earned in the community. My father, Adam, has recently taken on an important new role as the Managing Partner of his company, which has also undergone a big change. What started as Astor & Whitney Consultants is now Astor & Whitney Fund.
About seven years ago, my father started his business as a consulting firm, helping businesses grow and succeed. Through his vision and hard work, the company flourished, expanding beyond our small town. By 1971, Astor & Whitney had gained influence not only here but in nearby cities across Maryland. Along the way, my father built a strong reputation, earning the respect of many prominent figures in society.
Then, in 1973, he made a major decision—to shift the business from consultancy to investment management. He had many options, but in the end, he focused on two: a hedge fund or a mutual fund.
One evening, I sat with my father at the table as he carefully weighed the pros and cons of both choices. Even though I was only eight at the time, he valued my curiosity and believed I could understand these complex ideas.
Mutual funds are a way for people to invest their money together under professional management. Instead of choosing individual stocks or bonds on their own, investors pool their money into a fund that is carefully managed to create a diverse mix of investments. This portfolio might include stocks, bonds, money market instruments, or a combination of these, all designed to maximize returns while keeping risks under control.
Of course, managing a mutual fund isn’t free. To keep things running, these funds charge fees that cover the costs of professional management, administration, and other expenses. These fees ensure that the fund continues to operate smoothly and perform well.
One of the biggest advantages of mutual funds is their accessibility. Almost anyone can invest—whether it’s individuals looking to grow their savings, retirement accounts seeking steady returns, or large institutions managing wealth. Investors can enter mutual funds through brokerage firms, retirement plans, or even directly through the company that runs the fund.
Hedge funds, on the other hand, work a little differently. Like mutual funds, they gather money from multiple investors, but they are far more exclusive. Only accredited investors—those with high incomes or significant assets—are allowed to invest. These investors might be wealthy individuals, institutions, or specialized firms with the knowledge and financial strength to take on riskier strategies.
What makes hedge funds unique is their flexibility. Unlike mutual funds, which follow more traditional investment rules, hedge funds can use a wide range of techniques to maximize returns. They’re not limited to simply buying and holding stocks—they can short-sell, use leverage, or invest in unconventional assets, all in pursuit of high profits.
But with greater earning potential comes higher costs. Hedge funds charge two types of fees: a management fee, which is a percentage of the total assets under management, and a performance fee, which is a cut of the profits the fund makes beyond a certain target. This setup motivates hedge fund managers to aim for strong returns because they only earn big rewards if they outperform expectations.
By design, hedge funds aren’t meant for the average investor. Their exclusivity ensures that only those with the right financial background and resources take part, as the strategies they use can be complex and carry higher risks.
If my father had decided to launch a hedge fund, it would have meant turning away nearly 90% of his original clients—mostly middle-class investors who wouldn’t qualify as accredited investors. Instead, he would have had to focus on attracting wealthy individuals who could invest large sums of money. While this shift might have resulted in losing many of his loyal clients, the sizable investments from high-net-worth individuals could have made up for it.
But in the end, my father chose a different path. He decided to create a mutual fund, valuing the trust and loyalty of his existing clients over the promise of higher profits. He specifically chose to manage a mid-cap mutual fund, a decision that reflected his commitment to responsible and balanced investment strategies.
Mid-cap mutual funds focus on companies that fall in the middle range of market capitalization—typically between the top 70% and 85% in size. These businesses are often in a phase of rapid growth and expansion, offering the potential for higher returns compared to larger, more established companies. However, with this growth potential comes greater risk. Mid-cap funds tend to be more volatile than large-cap funds, meaning their value can fluctuate more sharply over time. Even so, my father believed this approach would serve his clients well in the long run.
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Over the past year, my father’s fund has gained the trust of more than 2,000 investors, including some well-known names—the mayors of Annapolis and Brunswick, top executives from B&O Railroad, one of Maryland’s leading railway companies, and several wealthy retirees with significant financial resources.
In just a year, the fund grew to $4.2 million and delivered an impressive 12.3% return during the 1973-74 financial year, despite a challenging economic climate. While the Dow Jones Industrial Average plunged by 16.5%, signaling a looming recession, my father still managed to generate profits for his clients. This outstanding performance has cemented his reputation in financial circles across Maryland and Virginia.
Now, just a year later, the fund has expanded even further. Nearly 10,000 investors have joined, bringing total assets to a staggering $24.5 million. With a management fee of 1% of the assets under management (AUM), the fund generates around $245,000 in revenue annually—steady income for operations, regardless of market conditions.
Now, moving on from the corporation part and coming to myself and my personal growth. When I was seven years old, I finally reached level 10. Suddenly, a screen popped up, blocking my vision. It mentioned something about unlocking my skillset, and then disappeared on its own. Out of instinct, I muttered "skills," and another screen appeared. To my surprise, it listed all my skills, which turned out to be practically nonexistent. I couldn't believe that all my hard work had seemingly amounted to nothing.
But guess what? I was wrong. All I had to do was perform a task related to that skill, and it would unlock at an appropriate level. My first unlocked skill was 'Reading,' and it activated itself at level 53. It seemed to have accumulated what I had achieved in my previous life.
Currently my ‘skills’ screen is something like this:
Naturally, my strongest skill is in economics—no surprise, considering I have a master’s degree in the field. Most of my other skills unlocked as I reached certain levels, but "Pitching" and "Hitting" were exceptions—I had to start from scratch with those. I practice baseball every day, and despite my age, I consistently outperform my peers. That’s why I’ve started practicing with middle schoolers to keep pushing my limits.
Even though I’m still homeschooled, I’ve taken it upon myself to study Grade 11 material. At first, I thought it would be easy, given my past academic success. But I quickly realized that time has a way of erasing things you don’t use regularly. Concepts that once felt second nature now take extra effort to recall, forcing me to spend more time reviewing and reinforcing my understanding. Still, I’m determined to excel, no matter how long it takes.
Wow, 10 AM already? Time really flies when I'm lost in my own thoughts. I should head to Dad’s office.
I make it a habit to visit my father’s office at least once or twice a week. It helps me get to know the employees and gives me valuable insights into the technology and operations of this era.
Lounging under the sprawling branches of a tree in our backyard, I realized the morning was slipping away. With a stretch, I stepped out from the cool shade and headed inside. A quick change of clothes—a simple t-shirt and shorts for comfort—was all I needed before locking up the house and setting off.
The office of Astor & Whitney Fund sits along the serene banks of the Potomac River, offering a breathtaking view of the waters that separate Maryland from Virginia. The peaceful setting, far from the chaos of a big city, gives the workplace a sense of calm. It may not have the relentless energy of New York, but it still hums with life, filled with the daily movements of local residents and business professionals going about their day.