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My account value reaches $600,000 for the first time; launching incubator hedge fund
- Thread starter lazar206
- Start date
Lazar, just curious. Are you doing the incubator under the review of an auditor and if so would you mind naming the auditor?
I started a hedge fund many years ago and I bypassed the incubator due to the costs. I presented my personal track record to investors and started trading OPM. I returned 48% in my first year and after that it wasn't difficult to get additional investors.
Congrats on a good start. My first month was down 1.5%. Even at a teenee loss like that it was difficult to erase it because of the OPM factor. It took me 6 weeks to get over the hump. Once I got that monkey off my back it was smooth sailing from there on. Trading changes in ways you can't anticipate when you trade OPM.
Good luck going forward.
I started a hedge fund many years ago and I bypassed the incubator due to the costs. I presented my personal track record to investors and started trading OPM. I returned 48% in my first year and after that it wasn't difficult to get additional investors.
Congrats on a good start. My first month was down 1.5%. Even at a teenee loss like that it was difficult to erase it because of the OPM factor. It took me 6 weeks to get over the hump. Once I got that monkey off my back it was smooth sailing from there on. Trading changes in ways you can't anticipate when you trade OPM.
Good luck going forward.
Quote from lazar206:
What's your account size?
Quote from the1:
Lazar, just curious. Are you doing the incubator under the review of an auditor and if so would you mind naming the auditor?
I started a hedge fund many years ago and I bypassed the incubator due to the costs. I presented my personal track record to investors and started trading OPM. I returned 48% in my first year and after that it wasn't difficult to get additional investors.
Congrats on a good start. My first month was down 1.5%. Even at a teenee loss like that it was difficult to erase it because of the OPM factor. It took me 6 weeks to get over the hump. Once I got that monkey off my back it was smooth sailing from there on. Trading changes in ways you can't anticipate when you trade OPM.
Good luck going forward.
The issue of audits has been discussed several times on this thread. As I mentioned in previous posts I am not using an auditor now during the incubation period. When (and if..) I decide to launch fully the fund itâs at that point that I will have all the past performance audited.
Regarding the 1.5 % decline in your first month that you mentioned in your pots, would you mind sharing with me what was the capital size at that point, and how long did it took you to get AUM to be large enough to be worth the hassle and the expenses of running the fund.
Thanks for your comment.
Quote from heech:
lazar,
Congrats on the good year!
Question, why the difference in performance from the fund and your personal trading? Looks like the fund was up 4% and your personal trading ~10% over April.
Is it just different leverage, or are you trading the two differently?
I am trying to use the exact same strategies for both accounts. However I am allocating the positions over time and not at once. The incubator is still around 50% in cash and hope it would be almost fully invested over the next 6 months.
I was considering to maybe using a slightly more conservative approach for the fund versus the personal account, however I am leaning strongly towards treating both accounts the same.
Bernie is that you?