How much capital can be raised with reasonable expectations? I have some superior programs for trading the Russell
Hedge Fund
- Thread starter midlifeguy
- Start date
What do you know about Hedge funds?...How long have you been trading?
Well if by hedging you mean minimizing risk, I'm currently doing it (albeit not on corporate level, hedge management of my own fund 
).
With alot of hedging strategies you can formulate these days (because of increasing financial instruments), the only problem you will face is how to find clients big enough to cover your monthly overhead expenses.
).With alot of hedging strategies you can formulate these days (because of increasing financial instruments), the only problem you will face is how to find clients big enough to cover your monthly overhead expenses.
i am thinking of starting one, and I am posting my trades and thinking on my blog right now as a start. maybe somewhere down the line i will get some people together to launch one. gotta prove i have the goods first http://lauristonletter.blogspot.com/
ok, suppose I have 2 years track record trading my own money, performance something like 70%-100% ann.
Where and How can I advertise my performance to attract clients?
starting a fund itslef doesn't looks too expensive today
http://www.capitalmanagementlaw.com/
http://www.greencompany.com/
1. Get audited statements, spanning a 2-3 year track record. Don't try to save money with cheap accountants. It will only backfire later.
2. Positive results and low DDs help... a lot
3. Get Friends and Family money, try to get mouth to mouth propaganda to attract some "local" capital. There is obviously limited potential here, but it can give you some initial mass to cover costs.
4. Once feasible, get an office + start to build a backoffice (=people). If you want to attract money outside of F&F nobody will invest if they can't see a brick&mortar facility with at least 4-5 people. If you're automated, think of backup plans that investors will want to see. What do you do if your servers freeze during market hours? What if you lose data (offsite backups)? What do you do if broker #1 goes down? What if your trade execution monkey bounces, do you have a backup guy ("key personnel"). Yes all this costs money, lots of money... Make a list of potential questions YOU would ask if you had money to invest into somebody you didn't know nor trust.
5. Get listed in databases with your audited results. IASG.COM is a good start. Barclays Group another.
6. Don't make the mistake of charging no annual fees or performance fees that are "too small". Investors will wonder why you charge way less than the competition.