I am glad that the point about solicitation of funds through ET was brought up because it is obviously an important issue and one that is integral to growing a hedgefund. Thank you to all who have taken the time to post their thoughts on the matter. Hopefully, we can make a greater effort to remain civil and respectful to each other in future posts...
I think it is necessary to clarify a point I made earlier. I have not, nor do I ever intend to solicit funds through ET. I have stated that previously several times in this thread. My intention behind posting my exeriences is simply to share them with others for whom it might be helpful and perhaps for me to learn from and network with others. I have met some great people through ET and I hope to meet more.
A distinction must be made that there is a HUGE difference between networking and soliciting funds. Anyone is free to network. A hedge fund requires substantial infrastructure and I am trying to build relationships in preparation for the time my fund is at a point where it can be converted from an incubator fund to a fully function hedge fund.
As far as soliciation of funds, I am permitted, by law, to accept investment capital from closely held relationships such as friends and family as long as I meet SEC requirements. Personally, all of my investors and I have shared relationships for a minimum of 3 years prior to their investment and many I have known much, much longer than that.
Lastly, the point made earlier about liability exposure to investors seeking restitution for losses is valid. Therefore, why would I want to open myself up to that kind of exposure to just anyone I would meet on ET? It is in my own best, selfish interest to only accept capital from those I know well. After all, if I am going to get sued, I would rather it be by people I care about!
(Sorry, but I couldn't resist a little levity).
Its always nice to have options! (and equities)