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Advice on Staring a Hedge Fund
- Thread starter lasner
- Start date
Quote from lasner:
400k net revenue....I have expenses to that. I like to trade and have an interest in developing a legit hedge fund.
Well put your own money into it and do it for a few years. Bring it to the point where it would be your focus instead of your energy consulting business and investors would look at it seriously, assuming the returns are there.
Quote from Hydroblunt:
Well put your own money into it and do it for a few years. Bring it to the point where it would be your focus instead of your energy consulting business and investors would look at it seriously, assuming the returns are there.
I'm starting a CTA with interactive brokers. That will get the ball rolling. Then in a year or two try a hedge fund
Quote from heech:
Do *not* call yourself a CTA unless you've already passed your series 3 and registered with the NFA. I believe there are legal consequences.
I think he said he was "starting" but yes you have to be careful not to hold yourself out there as such until EVERYTHING is in place... getting set up with a broker is the least the work in front of you.
Quote from heech:
It depends on a hundred different parameters. For an emerging fund, I've seen anywhere from 2-5% of AUM... or, 25%-35% of fees.
Yes, that's about right. The higher end of those ranges would be too rich for a manager who already had some traction / visibility / success, but wouldn't be out of the question for a room-over-the-garage operation. Re "hundred parameters", really it's one parameter -- how tough a sale is the product?
Quote from lasner:
If anyone out there could give some advice on starting a hedge fund that would be great.
Do not start one unless you have worked in an investment bank or broker running one and you know all the details.
Do not trade OPM unless you have worked in an investment bank or broker doing it and you know all the details.
Trading money is not a scalable business. It is highly probable that your one year positive performance is by pure luck. There is a 99.999% chance it cannot be scaled to larger amounts.
No offense intended, but that's a horrible post. I disagree on every point.Quote from intradaybill:
Do not start one unless you have worked in an investment bank or broker running one and you know all the details.
Do not trade OPM unless you have worked in an investment bank or broker doing it and you know all the details.
Trading money is not a scalable business. It is highly probable that your one year positive performance is by pure luck. There is a 99.999% chance it cannot be scaled to larger amounts.
Quote from heech:
No offense intended, but that's a horrible post. I disagree on every point.
I disagree with your disagreement. So what? Do you have something better to say to a guy with a one year performance on 15K who has the ambition to trade OPM without having any professional exposure to the business other than his own retail account? NO series exams and no experience as a CTA. Or are you so naive (no offense intended)?