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There is no need go through the process of creating a fund if you do not intend to have third-party investors. If your intention is to develop a track record, then you need to create an entity that will ultimately be the advisor or managing partner in the fund. There are legal, regulatory...

Without descending into theoretical debate, your statement is simply false. Had you said "Having nice closed-form solutions has little to do with trading or making money", then I would have agreed with you. There are numerous applications of GARCH that are in wide use by practitioners...

A "fully hedged" portfolio cannot be risk-free unless an arbitrage condition exists. (See M. Harrison and D. Kreps. "Martingales and Arbitrage in Multiperiod Security Markets. " Journal of Economic Theory 20: 381--408, 1979). The term "arbitrage" is much-abused as of late, but in theory refers...

Hey Don - is Bob playing any of the WSOP events? -segv

You seem pretty confident, surfer. Have you incorporated inflation-adjusted historical oil prices, low interest rates, capped production, steadily increasing demand, prolonged war in the middle east, terrorism, and supply disruptions in your forecast? I have, but the arrow is not pointing...

How is that oil short working out? -segv

Chris, I used the study materials from Securities Training Corporation, after returning materials from Dearborn and AIT. http://www.stcusa.com/ -segv

It is your assertion then, that the equalibrium values derived from your proprietary calculations have some predictive quality? Are we therefore to conclude that gold prices are not I(1), but are instead mean-reverting? Your proprietary calculations would probably be of substantial interest to...

Beware of the "turn-key" vendor, because you are paying a maximum price for a minimal service. The "turn-key" vendor's business relies on high volume. When you show up to the sheep-shearing booth at the expo, you are going to get sheared. As another poster indicated, the "big firms"...

First and foremost, you need to hire a securities attorney who is experienced with hedge funds and proprietary trading arrangements. Option 1 is not scalable in my opinion. Option 2 has a high start-up cost (>$20,000.00 USD), and high ongoing costs associated with compliance. The...

So, let me see if I understand. You now you have an outstanding judgement against you for $400,000.00 because you failed to defend yourself in court, which you did intentionally because you are "creditor proof". This tells me that you must be lying, or that you must be a total moron. Let me...

If they do business in the United States with United States citizens, they can be sued here. Whether or not the plaintiff ultimately wins the case, the cost of defending a Federal lawsuit can easily exceed $200,000.00 USD in the discovery phase alone. I hate to break it to you, but if you...

My model predicts an average of 15.4% for the SPX over the next 14 trading sessions. -segv

Your investors can always sue you, just like your clients can always sue you in any other business. It is simply part of the risk. From what I understand, it is true that accredited investors have a harder time winning such litigation unless fraud is involved. -segv

How about: "Unless you are a famous-billionaire-manager-purportedly-weaving-gold-from-straw, anything higher than 2/20 will get you laughed out of the room". -segv

You run a 100M fund with no substantial portion of your own net worth invested in it? Shenanigans. As to the other posters who wrote off odd hedge fund splits like 5/50, anything other than 2/20 is nonsense that would get you laughed out of the room. -segv

The Fujitsu N-Series LifeBooks are in your price range. I carry around one of these "desktop replacement" LifeBooks and it has been excellent. They have an immaculate display. Best value for the dollar, IMO. -segv

It is possible that one makes money with HV < IV, and also possible that one looses money even when HV > IV. The returns from delta hedging are path dependent; it is not enough to be correct about the relative pricing of IV/HV. On the other hand, if IV increases the accumulated profits from...

A smaller spread leaves the market-maker more succeptible to jumps in volatility. In an issue like CSCO with a lot of order flow, the market-maker might be willing to take that risk with a smaller spread, but would also likely reduce the size of the quote. Combine smaller quote sizes with...

The wider bid-ask spread decreases the frequency of quotes. This enhances liquidity since limit order traders are encouraged to leave their order in the book until their quote approaches fair value. -segv