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Arb Under - My council may be conservative, but they said even if I were to flat out hire a guy to work at my firm solely for his contacts that I would have to make it a marketing position and have him do more than just call up his contacts. They even went as far as saying i should consider...

In fact, it only applies to private investments like hedge funds. And I don't just think, I have been there and done that (Akin Gump is council). Hostile sounding to get your attention and shake some sense into the original poster. People think they can run money for a hobby, but this is...

I don't know whose ass everyone here is pulling all of this shit out of, but 20% of all fees (Management + incentive) forever is typical. Oh, if you are under 10 to 20M a good fund raiser won't even look at you. IT IS CRITICALLY IMPORTANT FOR YOU TO KNOW THAT THE FUNDRAISER MUST BE A...

You need a partnership accounting software package designed especially for fund managers. Because of the way partnership accounting works, you will also have to enter and account for all of your trades using this software as well (otherwise you cannot keep track of tax lots). All of the good...

Repeat after me ... The benefit is you get to contribute to a pension plan and sock away tax deferred money. The benefit is you get to contribute to a pension plan and sock away tax deferred money. The benefit is you get to contribute to a pension plan and sock away tax deferred money...

The only reason to incorporate your business as a subchapter S or an LLC is so that you can draw a pension plan. This is a huge reason for profitable traders. You can put 44K out of your first 220K in earnings, or 20 percent of what you earn and put it in a taxed deferred plan...and then trade...

From experience, I can tell you that no prime broker is interested in your business if you are under 10M. Your only option to get prime services is introducing prime brokers, of which there are now pleanty since the need has arisen to serve the 40% of funds with under 10M. At 10M you have...

If you are looking for institutional money you will have to hire brand name fund services, audit and tax, and legal. If you want to run money in Cayman at all you have to hire local (cayman) bookkeepers, legal, etc. Since nobody wants a bunch of locals touching their money, all of the big...

I started with 8K and had saved (after taxes, expenses, etc) millions by the time I started my fund this year. But I started trading a known market inefficiency and I didn't quit my full time job until I passed the 250K mark and my wifey didn't quit her's until I had well over 1M.

XP is a 32 bit operating system and has a constraint on the ammount of physical memory it can report. 3 gigs is the limit. Now dell tells me my computer is able to use the full 4 gigs, but xp only reports and manages 3 gigs....until you want to install xp64 that is it.

A point to point T-1 connection directly to your broker is going to cost at least $1500 per line per month plus 5K in installation. If anyone on here tells you differently they are either full of shit or their broker is in Kansas somewhere, ha! A T-1 to the internet is a waste since it is so...

You can't do jack until you form either an S-Corp or an LLC and start trading with company money. Then you can pay yourself a regular W-2 salary out of your earning which will allow you to take all kinds of pension plans up to 41K per year for you and another 41K for your spouse (if you can...

Kin, You have really got that mortgage interest rule mixed up. It has nothing to do with interest paid, but the face value of the loan itself. so if you have a 2M dollar loan on your home and you pay 100K per year in interest, you can only deduct half of it or 50K because the other 50K of...

zhivodka is correct about the offshore hedge fund being the only loophole. Malaka, the reason that works and opening a company doesnt is two fold. First the company has to be greater than 50% foreign owned, which with a hedge fund means over 50% of the money has to be foreign owned, but for...

I have been knocking out 7 figures consistently since I started trading in the late 90's. I can tell you this much about how likely this is. I had a salesman from a large bulge bracket firm visit my office recently. This person actually use to run the New York office of one of the biggest...

I stopped receiving monthly paper statements years ago when they started shipping them in boxes on big freight trucks. So if I were to file every trade on a schedule D it would have to be boxed up and sent to the IRS via truck line and removed with a forklift. Do you think this would cause an...

In case I was vague. It would be a waste of time/money to have your personal trading audited by a top CPA firm, because it couldn't be used to market your fund anyhow. However, as someone just mentioned, it is absolutely imperative to have a well known firm audit your fund, which is one of the...

Unfortunately, with hedge funds, you cannot use any prior track record from a prior fund or personal trading (even if audited). So if you are a famous fund manager you will raise all you want off your reputation because everyone is aware of the returns you have generated in the past, but you...

here is a nice list

Quarterly in advance is typical, always in advance though. Incentive fee is once per year at the end of the year. Regardless of how fee's are taken, you report to each investor monthly with NET performance. So the management fee, incentive fee, and all expenses born by the fund are ammortized...