How to start a Hedge fund?

marketsurfer · Feb 23, 2017

recession2016 said:
Why would you in your right mind go into a dying industry where you automatically start off at a disadvantage?

Dying. Lmfao! Is that sarcastic like recession2016?

The hedge fund business is the best business in the world. Nothing comes close.

sle · Feb 23, 2017

marketsurfer said:
The hedge fund business is the best business in the world. Nothing comes close.

What exactly makes it the best business in the world?

marketsurfer · Feb 23, 2017

sle said:
While I don't like BA, the above statement is not really true. Like most hedge fund managers, BA keeps a large portion of his net worth invested in his fund. So if the fund is down money, Bill is down too.

Yes

I learned a long time ago that pari passu is the only way to roll in this game.

The days of one profiting and the partners not -- are long over.

surf

marketsurfer · Feb 23, 2017

tommcginnis said:
Two necessaries in starting a fund --
1) as mentioned above, a fine-ass record. (Or, the promise of a reasonable expectation of sometimes a profitable period of some indeterminable duration...)
2) depending on your local jurisdiction:
http://www.ebay.com/bhp/series-65-exam

Snag one of those 65 books for <$40, and know it backwards and forwards. There's little trading in there, mostly procedural, ethical, legal detail. But you should know it, regardless.
Lastly,
3) have good genes or, marry well.

And remember "The way to make a small fortune on Wall Street, is to start with a large one."

1. Everyone has a good track record. A good track record is meaningless.

What is critical is that your strategy is unique and that it is expected to perform in the future! Heck, even the most unsophisticated investor knows the past is irrelevant to the future. Its standard language in every disclaimer.

Real hedge fund investors really dont care about past performance as much as strategy, fund ecosystem. Only complete nooobs put past performance first.

2. ? You can hire this if needed-- As a manager u are not dealing with the public. Only private sophisticated capital. It is a Private partnership.

3-- nice to have but not needed.

surf

speedo · Feb 23, 2017

speedo · Feb 23, 2017

Yeah, when you lack performance you have to dance fast.

zdreg · Feb 23, 2017

recession2016 said:
only good shit happens to hedge fund managers because they don't risk their own money aka bill ackman is a billionare and has lost billions for his clients

say what you want you. he knows how to win by losing.
http://pagesix.com/2016/12/22/billi...ivorce/?_ga=1.105674243.1852265985.1481154896

tommcginnis · Feb 23, 2017

speedo said:

"OMG."

I had to see it to believe it.
(And now I've seen it.)

Wow. I can't even muster a reply to the guy.

Color me

.....

Spectre2007 · Feb 23, 2017

The sentiment regarding them seems bad currently, unless your in the top tier with consistent results, assets dwindle. Endowments have a hard time justifying substandard returns for huge fees.

lawrence-lugar · Feb 23, 2017

joey juneau said:
I am interested in the hedge fund industry
Does any have advice on if its good to start a hedge fund and how

zdreg said:
if you have to ask the question you don't have enough experience in the industry/life

You need talent, first, as a trader. -- Prove this to yourself first.

Alot of people won't pass this.

If you will just become another ho-hum, average/failed hedge fund...then don't bother.
People can just park their money in the S&P 500, SPY. -- I think I read somewhere that more than 95% of hedge funds can't beat this index measure.

Basically all the hedge fund founders are/were excellent traders for years at the investment banks that they worked at.
This is the natural progression of things.

To start it, you need to be somewhat of a rich/successful man...with the bulk of the fund with your money. -- that's how you will convince or sell others to join in with you.