Initial Funding for a hedge fund

C

Caroch

I have been investing for many many years full time. I was the head trader at an upstart investment firm and found great success. Unfortunatly, due to problems with managment I have left the firm and cannot legally prove that the results were mine. Thus I have no track record.

I have wanted to start a hedge fund and spoke with various managers start up firms. They have convinced me that I need 1 million in assest traded successfully for one year, before I will get the attention of bif investors and fund of fund managers.

My question is if anyone knows where I can get that initially funding to create a track record. I have been advised of seed investors but cannot find any. Any help would be greatly appreciated.
 
Quote from Caroch:

I have been investing for many many years full time. I was the head trader at an upstart investment firm and found great success. Unfortunatly, due to problems with managment I have left the firm and cannot legally prove that the results were mine. Thus I have no track record.

I have wanted to start a hedge fund and spoke with various managers start up firms. They have convinced me that I need 1 million in assest traded successfully for one year, before I will get the attention of bif investors and fund of fund managers.

My question is if anyone knows where I can get that initially funding to create a track record. I have been advised of seed investors but cannot find any. Any help would be greatly appreciated.
More...

You don't need a million dollars right now. What you need is the proven record data.
So trade you style and make sure your records follow GAAP with 25k to start. If you show good risk management and a net profit of 3-5percent monthly you will have no problem getting partners,shareholders?
Once you have 3months trade 100k for 3months as above and if you can generate the same profit under the same guidelines you will be able to give your partners/shareholders a dividend and the million will appear.
You should look at being up and running as a fund one year from now.
I would also use an outside accounting firm to verify my results.

You do this for 6months with success you contact me.

w
 
If you can attain those result consistantly over 1 year and not just average monthly, per nassau suggestion. you be better off pyramiding your money instead of making money for some else. just my 2 cent.
 
Quote from nassau:

You don't need a million dollars right now. What you need is the proven record data.
So trade you style and make sure your records follow GAAP with 25k to start. If you show good risk management and a net profit of 3-5percent monthly you will have no problem getting partners,shareholders?
Once you have 3months trade 100k for 3months as above and if you can generate the same profit under the same guidelines you will be able to give your partners/shareholders a dividend and the million will appear.
You should look at being up and running as a fund one year from now.
I would also use an outside accounting firm to verify my results.

You do this for 6months with success you contact me.

w
More...

Did you sink your investors money into shares of Refco sir?
 
What im doing, and it may be somewhat backwards is posting all my trades to collective2.com . I can then charge people per trade if profitable. It seems this could be a way to distance myself from systems sellers, produce a high return, which is audited by collective2 and could constitute a track record, which in the future could result in trading / investing for large possibly corporate clients. I only get paid if my trade is profitable. This type of service is better than the vast majority of timing services, market letters , etc many of which charge hundreds of dollars a year. So if you sell your service to 50-100 persons online or self promote, you can make a living and develop client trust.

All this and you skip the downsides of starting a trading business- trying to access capital and not being able to afford to trade your system, etc. I know how it feels because I considered the prop route, but this too requires capital and you only get 4:1 on overnite and long term stuff. Unless youve found an enlightened hedge fund that allows you to trade a strategy. If anyone knows of such a firm or firms, please let me know. Id be very interested in at least a conversation with them.

Eric
 
Quote from psytrade:

What im doing, and it may be somewhat backwards is posting all my trades to collective2.com . I can then charge people per trade if profitable. It seems this could be a way to distance myself from systems sellers, produce a high return, which is audited by collective2 and could constitute a track record, which in the future could result in trading / investing for large possibly corporate clients. I only get paid if my trade is profitable. This type of service is better than the vast majority of timing services, market letters , etc many of which charge hundreds of dollars a year. So if you sell your service to 50-100 persons online or self promote, you can make a living and develop client trust.

Eric
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How long did you take to get the first 100 clients through the C2 site?
 
I havent gotten any at all Odd , starting on it as we speak.

But apparently for some types of traders / info providers, collective2 gives them enough for an income.
 
Thanks.

However 100 is 10% of 1,000!

http://www.elitetrader.com/vb/showthread.php?s=&postid=885509#post885509

Quote from OddTrader:

Q
http://www.collective2.com/cgi-perl...aypage=tutorial/sherpa/amat/amat4.sessionhtml

Third, Collective2 already has a community of nearly 1,000 active traders who are shopping for trading ideas and trading systems. So making your system available on Collective2 is a great way to start making a name for yourself.
UQ

Are there any statistics about attracting how many paying customers for individual systems (or for the top ten most popular systems)?

So that a systems seller knows precisely the total number of paying customers using the system through the site.
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Quote from jackbyrd:

Did you sink your investors money into shares of Refco sir?
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I'm interested in your slanderous comment.
Care to expand.

I'd be very interested in what information you have or believe you have that I don't.

Did I trade rfx, sure did...but sink? ..investors?...

I look forward to your response,

w
 
Quote from psytrade:

I havent gotten any at all Odd , starting on it as we speak.

But apparently for some types of traders / info providers, collective2 gives them enough for an income.
More...

All this discussion of selling systems gave me a thought - I might just sell some things I develop to fund better data, hardware, etc. I never thought of that. That would actually be good. Now let me go through my systems :D
 
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