How to start a Hedge fund?

[impulse]

You are in luck, I happened to have researched this myself a few years ago.
Here's all the info I found:
http://www.investmentlawgroup.com/launching-an-incubator-hedge-fund
http://www.fwallstreet.com/article/170-how-to-start-your-own-hedge-fund
http://www.riveleslawgroup.com/
http://www.capitalmanagementservicesgroup.com/incubatorhedgefunds.html
http://howdoyoustartahedgefund.com/hedge-fund-in-a-box/
http://www.hedgefundlawblog.com/incubator-hedge-funds.html
http://www.marcumllp.com/services/alternative_investments/emerging_manager_program
http://www.eam.bm/hedge-fund-start-up-solutions/

 

[marketsurfer]

Sorry pal no agreement there on fee structure, never heard of 0x10 or worst 0x5 until and unless some structured scaling is in place i.e. big sum broken into pieces with later portions charging less fees and incentives.

Do not know what you stand to gain from "disinformation" that would mislead a newbie and vulnerable "wanna be".

Some one mentioned Friends and Family and that is better way to go about rather than investing savings $100K into starting a HF going through all sorts of regulations etc.

I can see you are not in the business.

surf

 

[marketsurfer]

I really hate to write this, but I'm going to disagree.

Without going into sordid details, the actual *operation* of a fund is available to anyone with a desktop. "Operations" can be done by one person; "Trading" can be done by 2-3-4 others; "Research" can also be done by 2-3-4 more. And all of a sudden, a guy with an undeveloped basement has thrown paint and cubicles around, installed redundant signal and battery back-ups......

I'm in Indianapolis. We've got two pro sports teams here, and 2-3 sizable company hqs, and draw a surprising amount of national and international money. It is *not* a finance hotspot, and expectations surround: 1) you're a known entity (to put the laugh to MktWetness and his disinformation campaign ), 2) you're damn cheap. (Or, off they go, to Chicago, for some pizza and hedges.)

That's jus' my take. But it's a take from a land of ferociously low overhead, lots of latent talent, and a neighbor nearby (Okay -- a 3hr drive) who'd love to take your money. So, 0x5 would work, in the conjunction with other activities, here.

Dang. I used an "emogee"......

Absolutely correct-- in fact, there are many one man operations with 100% of the back office farmed out. So no need for the cubicles in the first place!

Had no idea about indianapolis-- thought its only revenue was indy 500.

 

[zdreg]

 

[Handle123]

So if your real time 3-5 year performances beats the S&P500 Indexes, smaller drawdowns and willing to start one's own hedge fund with few million, people are not going to care about the numbers? Investors only going to care about a novel new approach on how to make it? Geeze, America has really gotten screwed up.

 

[geedy]

You are in luck, I happened to have researched this myself a few years ago.
Here's all the info I found:

Thank you for sharing the links. I have been thinking about how to start hedge fund for a while now. Looks like a complicated subject altogether. I will try to make some sense of it from these links.

 

[Sig]

I'm curious if anyone knows of any successful hedge funds that were started in the last decade by someone who didn't have previous finance industry experience or a rich parent? If so, those would be the examples to follow. I don't know of any but I'm not in the industry so there very well may be dozens?

 

[comagnum]

Or better yet become your own hedge fund - no cumbersome accounting to mess with or regulatory head aches. How to do it: live below your means saving 30-50% of your income - always pay yourself first, than the bills. Now trade up as you go. Before you know it you'll have more than enough to go at it alone.

 

[Mtrader]

Start a fund for NON Americans and you don't need all this paperwork, audits, big expenses to comply with all the rules. But close it as soon as you have enough money of your own. That's how I did it. Funny is that my clients all came from an American broker but they were all non Americans.
In hindsight it was stupid to start that fund. Would never do it again. Trade for yourself and forget the rest.

 

[prc117f]

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

I always wonder why do people give these people money to gamble away?

That would be like you giving a stranger 50K to fly over to Vegas and spend a week there. They get all the fun and action, you just get the empty bank account. I cannot figure out why people hand HF managers so much money to underperform the index (At best) or lose it all.