My experiences as a Hedge Fund Startup

Who needs to PM you here is one list to review:

ABN AMRO ADM Investor Services Alaris Trading Altegris Investments Banc of America Securities
Barclays Capital Beverly Hills Capital BMO Capital Markets BNP Paribas Brewin Dolphin
BTIG Carlin Financial Caylon Financial CIBC World Markets Citi AI
CL King Concept Capital Conifer Securities Credit Suisse Currenex Inc.
Cuttone & Co. Davis Securities LLC Deutsche Bank Dundee Securities Corp. E. Larkin Company
Electronic Brokerage Systems Etech Securities Fidelity Prime Services Fimat International Banque SA First Clearing LLC
First Southwest Co. Fortis Prime Services Garwood Securities Goldman Sachs Prime Services Grace Financial
Greenwich Prime Services Interactive Brokers Inventure Growth Securities Investec Prime Services ITG Inc.
Jefferies & Co. Jesup & Lamont JP Morgan KBC Clearing Legent Clearing LLC
Lek Securities Lighthouse Prime Services LPL Financial Services Marex Financial Merlin Securities
Merrill Lynch Prime Services Mesirow Financial MF Global Morgan Stanley MS Howells & Co.
MVP Financial LLC National BankFinancial Natixis Bleichroeder Neuberger / Berman Prime NewEdge Group
Nomura Prime Services Nordea Prime Services Northpoint Trading Partners Northern Trust Prime Services Numis Prime Services
Penson Worldwide Inc. Pershing Prime Brokerage Piper Jaffray Prime Brokerage ProTrade Financial Prudential Bache
Raymond James & Assoc. Inc. RBC Capital Markets RBC Correspondant Services RBC Deixa Services RBS Prime Brokerage
RCM Prime Services Ridge Clearing Solutions S3 Asset Management Sanford C. Bernstein Co. Saratoga Prime Services
Scotia Capital SEB Prime Services Shoreline Trading Group Silver Q Partners SIP Prime Brokerage
Sloan Securites Prime services Southwest Securities Sterne Agee Clearing Inc. TD Securites Prime Brokerage Terra Nova Financial
Trade Desk America Trading Screen Inc. Trance Consulting Services Triad Securities UBS Prime Brokerage
Vanthedge Point Group Wedbush Morgan Securities Ziv Investments
 
Quote from The_Gekko:

@HFStartup... From what I've read so far you seem like a pretty decent guy. So do you and all your potential investors a favor. Gain some more of the ruthless instinct and tact you'll need to raise the kind of capital you're looking for. Not saying that you don't have any now because it obviously takes alot of guts to loose all you're money at this and comeback for some more. All I suggest is that you be ruthless about what you offer because you know you're doing the right thing. In comparison, there are a countless number of schucsters and hustlers that don't give two shits about what happens to their clients money a week from now, as long as they get their commissions.... Read up some more on sales tactics, how to make people like you, cold calling techniques etc... Some years back I did the boiler room type thing. I was never any good at unless I believed I was doing the right thing for the guy on the other end of the phone. When I was armed with that the rest was easy. As sales go there's nothing like finding a whale, making him lay down, and 45 mins. later you got him on his back flipping his fins begging to give you 100k to start. Just my two cents.
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Good advice. I would just add that this works much better if you have a leggy Eastern European blonde with an MBA and a short skirt doing the sales pitch.
 
What about IB's prime services? Don't know their requirements but they are just starting up the service so they may be lenient.

Quote from EquityGuy4321:

You mentioned that prime brokers you approached are not interested in incubator funds such as yours. Actually, it's worse than that. The major players in the PB area are actively jettisoning established clients with even quite substantial AUMs and closing small individual accounts (like anything under $100 mio). Basically, they all want the billion dollar guys now.

This development has given rise to PB outfits that specialize in smaller clients. Merlin Securities is one that comes to mind. Not completely sure but given their target market I would think that they would have some sort of fundraising program for their clients.

Perhaps if/when you are ready it might be worth it for you to approach.

Good luck.
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Read up some more on sales tactics, how to make people like you, cold calling techniques etc..
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WRONG! I raised over 5 million a month, for the last two years. I raise money for all kinds of "Ventures." I only deal with individuals that have a minimum of 5 million net worth, not including their home. I go above and beyond the REG A rules as accredited.

Most of my clients are in the 50million to 100million range. THEY DO NOT LIKE SALES TACTICS! They can smell that "Tactic" from a mile away as a 2 bit broker or wana be capital raiser.

PM me If you want me to help you with some ideas of learning to Swim with the sharkes and raise hundreds of millions. Forget any "Sales" books or bullshit "Sales Tactics". They do not work but there are certain key fundamental rules you must play by when dealing with the Top 1% of the country.
 
What's you maximum drawdown? 37%...that's very good.....But obviously not every year?

how long you been trading it now?

Well done.
 
What a w****!

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trader3cnd

10-03-10 12:49 PM

Quote from HFStartup:

Einstein was right when he said everything is relative!



I have to warn you that any references to Einstein from people who do not understand his work - like you obviously - are a widely accepted sign of a crank or a troll. This is not my invention; it is a well-known rule in science. So if you want to be taken seriously, then try to avoid any references to Einstein.

As far as your experiences, they are below average. You have conveyed no new and useful information to anyone who is looking to start a hedge fund other than documenting your frustrations. There is nothing special about it. I expected much more and I was really disappointed. I was also surprised by your reference to doubling an account and then losing it all. This sounds like someone who had no concept of risk and money management yet that person wanted to manage the savings of other people.:mad:
 
Quote from chipmunk:

What's you maximum drawdown? 37%...that's very good.....But obviously not every year?

how long you been trading it now?

Well done.
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How is 37% max dd "very good" ???

There's a reason why Toby Crabel manages $3billion and William Eckhardt $700million even though the latter makes much more return.

I'll give you a clue, its something to do with consistency of returns and a very low, single digit maximum drawdown.

That's what draws the pension funds, endowments and other institutional investors.

But to get anybody (even high net worths) on a board a fund with 37% max dd you have to be hitting some good numbers, perhaps 40-50% a year will get people interested.
 
When looking at a trackrecord. I believe the best years should be double that of the drawdowns.

Quote from GekkoToBe:

How is 37% max dd "very good" ???

There's a reason why Toby Crabel manages $3billion and William Eckhardt $700million even though the latter makes much more return.

I'll give you a clue, its something to do with consistency of returns and a very low, single digit maximum drawdown.

That's what draws the pension funds, endowments and other institutional investors.

But to get anybody (even high net worths) on a board a fund with 37% max dd you have to be hitting some good numbers, perhaps 40-50% a year will get people interested.
More...
 
You can see that in his first post, 14 % drawdown and yeah that 32 % return is pretty good.

Quote from chipmunk:

What's you maximum drawdown? 37%...that's very good.....But obviously not every year?

how long you been trading it now?

Well done.
More...
 
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