Its very hard to make a living keeping 20% of the profits without a substantial sum of money.
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Finding investors to start a hedge fund
- Thread starter Quant93
- Start date
You can make a modest living on $40-50K per year.Its very hard to make a living keeping 20% of the profits without a substantial sum of money.
Depends of how much profit you generated for your clients. The commission is generated by the profits (in $), not by the money under management.Its very hard to make a living keeping 20% of the profits without a substantial sum of money.
You can make a modest living on $40-50K per year.
Maybe if you live in Iowa--- at that level having a fund does not make sense. Way better off trading your own million or whatever your stake is. surf
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Hi everyone!
I am interested in starting an offshore hedge fund. The problem for me is that I, except from my education (still attending a university where I am studying business and economics), have no real experience. However, I have invested and traded on my own and I have recently developed a really interesting investment strategy.
It is a quantitative investment strategy which I figure might help a bit due to my complete lack of experience. The backtests that I have done on the strategy shows that it would have significantly outperformed the S&P 500. And the goal for the fund would be to have a good relative return compared to the major US indices, not to aim for just a good absolute return.
But, my question is, how can I raise capital to this fund? How can I assure potential investors that I can manage to run a fund successfully? And where do I find these investors?
The only thing that I can say would contribute to my credibility is that I have taken and passed Swedsec licensing tests. I live in Sweden, and Swedsec licenses are usually required for financial analysts, fund managers, investment advisors and so on. Although I am not really familiar with the regulations in the US, but from what I have read I think our Swedsec license is equivalent of your Series 65 license.
But anyway, how do you propose that I handle my situation? Is it still possible/realistic to find investors?
Your best bet right now is to get a gig at a major fund or central bank etc-- build your pedigree, then mingle with the UHNW's so you will have something to talk about-- and be UNIQUE-- OR be smartest yet and partner with someone with pedigree and connections--- that's the smart way--
You can also start a hedge fund in Malta with 25k and register it in Luxembourg under another fund ( fund of funds). As for size and making a living I think it depends on your performance, aum, and where you live. Example: managing $1million with a 20% performance and taking 25% fees from the profits (50k) while living in Bali or chiangmai Is a very good deal. you live like a king and you won't be able to spend half that money.
You can also start a hedge fund in Malta with 25k and register it in Luxembourg under another fund ( fund of funds). As for size and making a living I think it depends on your performance, aum, and where you live. Example: managing $1million with a 20% performance and taking 25% fees from the profits (50k) while living in Bali or chiangmai Is a very good deal. you live like a king and you won't be able to spend half that money.
Minimum capital in Luxemburg is 1.25 million euro.
Investors should put up at least 125K each, which might be a problem in the beginning.
Start up cost between 50-100 K.
There are a lot of conditions that have to be fulfilled. Will cost you money if at least you can already find people who want to help you. Umbrella fund sthat aer serious, are difficult to find.
Regulations will limit free choice of how much and what you can trade by law. For example: you cannot trade only the ES. Positions are limited by law.
Getting approval (licence) to open a fund in Luxembourg is very difficult, especially for newbies. You will be screened and have to give a complete list of what you did in the past, especially experience in the financial sector. Based on what I know about OP changes are almost nihil.
There is a big difference between what you read on internet, what theoretically is possible, and what in reality is possible.
A long time ago I read about offshore funds. That was the miraculous solution. I started 2 funds offshoreon BVI. Closed them within 1-2 years. Lots of problems and expenses and not working conveniently. So I know what the difference is between the internet and reality. I experienced it myself and paid a lot of money for it.
I was not giving a possible example from Internet readings but an existing one. Fund of funds listed in Luxembourg. The question is always, how much aum do you expect to bring in year one?
You can also start a hedge fund in Malta with 25k and register it in Luxembourg under another fund ( fund of funds). As for size and making a living I think it depends on your performance, aum, and where you live. Example: managing $1million with a 20% performance and taking 25% fees from the profits (50k) while living in Bali or chiangmai Is a very good deal. you live like a king and you won't be able to spend half that money.
Malta is a great place to domicile. The Commino Platform offers the best and most secure deal-- PM me if anyone is nterested.
Minimum capital in Luxemburg is 1.25 million euro.
Investors should put up at least 125K each, which might be a problem in the beginning.
Start up cost between 50-100 K.
There are a lot of conditions that have to be fulfilled. Will cost you money if at least you can already find people who want to help you. Umbrella fund sthat aer serious, are difficult to find.
Regulations will limit free choice of how much and what you can trade by law. For example: you cannot trade only the ES. Positions are limited by law.
Getting approval (licence) to open a fund in Luxembourg is very difficult, especially for newbies. You will be screened and have to give a complete list of what you did in the past, especially experience in the financial sector. Based on what I know about OP changes are almost nihil.
There is a big difference between what you read on internet, what theoretically is possible, and what in reality is possible.
A long time ago I read about offshore funds. That was the miraculous solution. I started 2 funds offshoreon BVI. Closed them within 1-2 years. Lots of problems and expenses and not working conveniently. So I know what the difference is between the internet and reality. I experienced it myself and paid a lot of money for it.
Your info is outdated. Things have changed much for the better.