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Neal, This definitely helps. I agree there is inherently more risk in investing with relatively inexperienced hedge fund managers with little or no track record. However, as you point out, academic studies indicate that managers generate more competitive returns in the earlier stages of their...

It is an interesting concept ...it is early... with your model in mind, I wonder if it would make sense to construct and market an emerging trader/manager fund of hedge funds (FOHF). In your opinion, is there any disadvantage to a seeding structure whereby the trader, the firm/fund, and an...

trade-ya1, Are you working on the the same model as Capital Z, Asset Alliance or FrontPoint where you have an equity stake in the "farm team", trading team, or hedge fund in exchange for future capacity rights and a portion of the management and performance fee revenue stream? Or is your...

DFman, Thanks I appreciate the info. Would that be ETG's HEDGECAP program? I agree ONE of the headaches in running a hedge fund is dealing with the "what have you done for me lately" clients. Investor relations is clearly one of the bigger headaches as well as the accounting, administration...

Don, Never really thought of it like that. I guess the forming of a hedge fund is ONLY in the best interests of those who are mediocre, if not, sub-par traders? Only for individuals/teams who have superior asset raising skills rather than trading skills and desire to make a living off of the...

Don, Thanks for the straightforward advice. Point well taken. If I understand correctly, one of the distinctions between pooled capital and firm capital is that with pooled capital the capital could be depleted through OTHER trader's losses? Going back to the hedge fund "incubator"...

Recently I have seen various firms offering trading capital and leverage to active/prop traders. What are some of the pros and cons of the following arrangements: 1)Forming an LLC funded with trader(s) capital, firm capital, and outside investor capital. With this structure "A" shares are...