Start-Up Hedge Fund - Any advice?

[MattZ]

Documented performance and you may, if you have the scale or eventually achieve scale, separate the money-raising from the trading.
Don't let anyone talk you out of your dream.

I hope I did not sound discouraging. I just expressed variables people do not consider to be better equipped and prepared.

 

[MattZ]

Use IB friends and family account. You can link 15 accounts and do not have to pay to register as money stays in individual names.

I think that because he is registered as a Hedge Fund at this point, this would not apply.

 

[tommcginnis]

Use IB friends and family account. You can link 15 accounts and do not have to pay to register as money stays in individual names.

Not as simple as all that:
• Every state has different regs with regard to the number of for-fee clients for which accounts can be traded before registration has to occur.
• tax implications of fee/status are manifest at the state and at the federal level.
• tax efficiency directs fees to be expensed from client accounts, rather than paid to the trader through post-tax dollars. (figure a rough 33% gross-up.)
• as soon as you charge fees, IB must classify you as a professional (with what is really a modest bump in per-month {data} charges).
• if you charge fees, your tax picture and your clients tax picture is *much* simplified by IB's account architecture.

Presumably, the accounts/architecture aspects would apply to other brokers that offer them as well, but I have no direct knowledge.