dumb question: if my friend wants me help manage his money

M

mizhael

what legal procedure shall we follow?
its a bit small money but evenutally hopefully we can attract more funds and grow big.
for such small money do we have to register as hedgefund?
 
Quote from HowardCohodas:

I have been asked but will not manage other people's money. If I screw up I only have myself and my wife to answer to. If I manage a friend's money I risk a friendship. Friendship is more important to me at my age than money.

Some other things to think about. Managing Your Money vs. Other People’s Money
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I wouldn't trade friend's money with the strategy you are using either. I must say I'm kind of relieved you're not thinking about it.

However generally I think that when your client/friend and more importantly yourself fully understand the risks of the strategy trading their money isn't a problem. If the strategy fits their risk profile and they're willing to take the risk then it's fine.

Beside it's more interesting to get 2%/20% on other people's $100M than 20% on my $1M...

Ninna

Ninna
 
Quote from nLepwa:

I wouldn't trade friend's money with the strategy you are using either. I must say I'm kind of relieved you're not thinking about it.
However generally I think that when your client/friend and more importantly yourself fully understand the risks of the strategy trading their money isn't a problem. If the strategy fits their risk profile and they're willing to take the risk then it's fine.
Beside it's more interesting to get 2%/20% on other people's $100M than 20% on my $1M...
Ninna
More...

How many of your friends do you trade for?
 
Quote from nLepwa:

I wouldn't trade friend's money with the strategy you are using either. I must say I'm kind of relieved you're not thinking about it.

However generally I think that when your client/friend and more importantly yourself fully understand the risks of the strategy trading their money isn't a problem. If the strategy fits their risk profile and they're willing to take the risk then it's fine.

Beside it's more interesting to get 2%/20% on other people's $100M than 20% on my $1M...

Ninna

Ninna
More...
Many of the pundits here warned me that a jump in volatility would cause me pain, and it did. But wait... February will still be my best month ever. Mustn't get complacent. Hubris is a heartless companion.

Ninna, we are really talking about risk tolerance in two different domains. I respect that you would not trade my strategy because our risk profiles are different, among other reasons.

That is only loosely connected to the risk tolerance with respect to friendships. Clearly my risk tolerance for trading is higher than many. I suspect my risk tolerance for losing friends is lower than many.
 
Quote from ProfLogic:

How many of your friends do you trade for?
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Few, a handful.
Most of our clients aren't my friends, fortunately. :)
And also we have high minimum investment so that limits the number.

Ninna
 
Quote from nLepwa:

Few, a handful.
Most of our clients aren't my friends, fortunately. :)
And also we have high minimum investment so that limits the number.

Ninna
More...

Your answer is perfect.
When one achieves a high win rate and they become consistently profitable, not having the stress of trading for others is a blessing.
 
Quote from nLepwa:

Few, a handful.
Most of our clients aren't my friends, fortunately. :)
And also we have high minimum investment so that limits the number.

Ninna
More...
Sounds like you need richer friends. :D
 
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