Has someone an experience opening a fund?

Since lemarche is looking to raise 10k euros per friends & relatives, I'd say he is domiciled in Europe not US.



Quote from NorthernLimit:

Depends on what you are trading. Opening as a CTA is easy. You can pass the series 3 in a couple of months, incorporate for $800 and you are in business to run managed accounts, which for many investors is far preferable to a fund.

You need to focus on sales first. If you can't sell your product don't even start until you can.

Going "off-shore" is nutty. You and US investors need to report global income. Also, it can cost $100k to start an off-shore fund. Off-shore doesn't mean off limits, there are compliance and registration requirements in these countries. Finally, you do not avoid compliance you are just breaking the law. If you are domiciled in the US (I assume) then you must register domestically. Off-shore registration is for foreign investors who want access to US managers without being subject to US law, but as a US registrant you are not precluded.
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Thanks NorthernLimit, sorry for late reply have been busy these last few weeks.. Am sure your answer will be of interest to other readers of the thread who are based in the US, thanks.

I am based in Europe indeed, and looking to go offshore for 3 reasons : cost of setting up, taxation of capital appreciation (not at source) and taxation of manager (European income taxes are levied on a territorial basis only, am always amazed to see my American friends paying US taxes even though they are living abroad !..).

Thanks Ofthomas will have a look at the video.
 
I hope lemarche does not mind that I use his thread for a question about opening a fund.
I would like to open a fund in Luxemburg. I have all I need..... except a licence. Seems to be difficult, if not imossible to get this licence.

I would like to find someone who can help me with his licence to start up. The fund will only trade my own money so there is no risc about customers who can complain.

Who has a licence and can help me? Can be in other country as well, so not limited to Luxemburg. I live in Europe.
 
Lemarche how did you end up structuring your fund?

I'm a Canadian citizen with investors from different countries and also considering the offshore fund route for now.
 
Why would you want the headaches of growing a small fund! If trading wasn't hard enough. One could realistically get several hundred to millions from friends and family, but can you imagine family gatherings?

Plus the trading/execution gets harder.
 
I don't actually trade, I invest for long holding times and so don't anticipate big swings, so family gatherings should continue to go well. I'm looking at taking on some friends money and looking at different ways to incorporate thats all.
 
lemarche said:
Starting small, for example family and friends?

What are the cheapest ways to do it legally (I guess offshore)?

What is the minimum AUM for which you would deem it worthwhile starting a fund? (even though the idea is to start small and grow witrh performance)
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Unless you get $20m in AUM it's not worth your time - More headaches than it is worth unless, of course, it is some exotic fund of sorts. Probably a pipe dream - just trade your own money for 5 years
 
You can start with investmentlawgroup.com , or capitalmanagementservicesgroup.com. Both of these companies are expert lawyers that specialize in and set up hedge funds.
 
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