CTA Startup

Quote from heech:

All fund-specific expenses come out of the fund. The fund pays it, before management/incentive fees. So audit, tax, fund formation expenses... all comes from the fund. Your break-even analysis shows this number, so investors know what they're getting into.

My expenses are $25k audit/tax, ~$20k admin a year... so slightly less than what you guessed! (I feel better already.)
More...

I sent ya a PM on this, but does the $25k audit/tax include sending out K1's to investors? Also, can the fund pay for data feed/software, even health care before management fees as well?
 
Quote from Stok:

I sent ya a PM on this, but does the $25k audit/tax include sending out K1's to investors? Also, can the fund pay for data feed/software, even health care before management fees as well?
More...
The "tax" component includes the K1. For just audit (without tax services), they quoted $20k.

The fund can pay for data feed/software if you're using it *only* for trading the fund. If you do any other research or trading with it, it shouldn't be included. I haven't tried to get any of my other expenses wrapped up by the fund, just seems like more work than it's worth justifying it.

Health care, etc, would definitely be an expense for the LLC management company, *not* the fund.
 
Another question, if a person has part ownership in the management company of an CPO or CTA, but is just an equity investor and had nothing to do with trading, etc...are they required to be registered?
 
Quote from Stok:

Another question, if a person has part ownership in the management company of an CPO or CTA, but is just an equity investor and had nothing to do with trading, etc...are they required to be registered?
More...
Yes, anoone with major (more than 10%) interest must in the business must regristered with NFA.
 
Quote from SuperVolatility:

Yes, anoone with major (more than 10%) interest must in the business must regristered with NFA.
More...

Ok, but they don't need a series 3...just registered with the NFA and pay dues?
 
I am from Global Futures, and have helped people transition from proprietary trading to becoming a CTA. If you have any questions on how to get set up as a CTA, or would like to discuss clearing arrangements, I would be more than happy to assist.

Devin Brady
dbrady@globalfutures.com
877-367-3177
 
If I am not actively trying to raise trading capital, what is the benefit of becoming a CTA?
I can still trade for clients using IB Advisor account.
 
Two more questions:

For those that are CTA's or CPO's or both, which is the structure you favor the best?

Also, if one has an LLC as the management/GP of a CPO, can that be used as well as the management co of a CTA? Or would u need to separate management co's?
 
You must log in or register to reply here.
Back
Top