Finding investors to start a hedge fund

[Butterball]

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?

Friends and family is your best bet. Pool together a couple hundred k, run it for a few years. If you're lucky and can trade through a bear market successfully you will have a good track record to use in the future. If you did well did you can start marketing to outside investors in a few years.

Sorry if that sounds like a slow process but that's how it is.

 

[i am nobody]

Friends and family is your best bet.

I would NEVER do this. Did it once and had major problems in my family. Better take strangers.

 

[marketsurfer]

I would NEVER do this. Did it once and had major problems in my family. Better take strangers.

Agree. Its never smart to mix family with business--- it "may" workout but the downside is tremendous.

 

[gkishot]

I would NEVER do this. Did it once and had major problems in my family. Better take strangers.

Do you think strangers would be more benevolent to you losing their money than your family members?

 

[rmorse]

I started my trading business with a loan from my parents in January 1985. Sometimes you have to make hard choices. Paid them back within a year.

 

[marketsurfer]

Do you think strangers would be more benevolent to you losing their money than your family members?

Hedge fund investors should be well aware of the risk. In fact, that's the law.

Family members often invest because they "like" u and are unaware of the risk.

 

[marketsurfer]

I started my trading business with a loan from my parents in January 1985. Sometimes you have to make hard choices. Paid them back within a year.

That's a rare feat in the real world. Kudos to you!

 

[gkishot]

Hedge fund investors should be well aware of the risk. In fact, that's the law.

Family members often invest because they "like" u and are unaware of the risk.

1. I believe the law is for the hedge funds to disclose the risk to the investors.
2. I also believe that when family members are not aware of the risks this is b/c they were not sufficiently disclosed.
3. Unhappy investors will destroy your business anyway. So not much of a difference.

 

[debitspread]

1. I believe the law is for the hedge fund to disclose the risk to the investors.

Docs are usually vaguely worded, and few investors read them anyway. The real risk is fraud/thievery, which of course isn't disclosed in any docs.

 

[dealmaker]

Best advice: start a business in Ukraine and make 100-200%. With that profit you can start your fund.

in a country that we don't if it will be around in 5 years...