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My account value reaches $600,000 for the first time; launching incubator hedge fund
- Thread starter lazar206
- Start date
I may have missed this but what were the total setup costs for your fund? What about the projected annual costs?
Quote from Ghost of Cutten:
I may have missed this but what were the total setup costs for your fund? What about the projected annual costs?
Until now the cost has been $1600 to establish the incubator fund and annual expenses should be minimal, as long itâs in the incubator stage. All of this is changing âdrasticallyâ when converting the incubator b into a full fledged hedge fund.
Quote from lazar206:
Until now the cost has been $1600 to establish the incubator fund and annual expenses should be minimal, as long itâs in the incubator stage. All of this is changing âdrasticallyâ when converting the incubator b into a full fledged hedge fund.
Ok, but won't you need an audit each year for the track record to mean anything?
With some structures, the partners (in this case, perhaps OP alone) can agree in writing to forgo an audit for a year or two.
I'm not sure where this information is coming from. I'm not saying its wrong, but just that it doesn't match what I've seen.Quote from lazar206:
Exactly. When you are converting to a full fledged hedge fund, its at that point that you will have all the past years audited.
From my limited experience so far, the only requirement for "audited" numbers is coming courtesy of the NFA. As a registered (non-exempt) commodity pool, I have an obligation to provide an annual report + audit for all of my investors.
Other than that, when dealing with prospective investors (especially institutionals), I'm always asked for the date of most recent annual audit. (And, presumably, they will want to see sign-off from my auditors if due-dil proceeds further). No one has ever suggested they'd want to see audits from past years.
No investors so far have challenged or queried me on my historical performance numbers. I could've put fantasy numbers on there if I so wanted, and no one would be the wiser. We're all more or less operating under the honor system.