Starting a fund / raising capital
- Thread starter doublet83
- Start date
Thanks for the comment. I have no intention of going through the process right now. I don't believe my track record is long enough, and I am still very busy with research and initiating coverage on various names this year.
I'm more curious to know whether or not I can expect to be able to raise 1 to several million in a 1 to 3 years, assuming I can maintain my historical leve of performance. Advice from people who have gone through the process would be greatly appreciated.
Naturally I expect some degree of skpeticism surrounding my results. My hope in starting this thread was to gain some real insight in the feasibility of raising capital in a few years, rather than to prove how I have achieved my results or to brag about how great they are. I have achieved my results without taking on high levels of leverage or risk. This is reflected in the drawdown. It will become more evident if I sustain these results over a few more years. Part of the reason my results have been so good is because with a small amount of capital, it is easier to be very 'opportunistic' if you know what you're doing.
By trading my own capital, I am significantly increasing my short term income at materially greater risk. I am giving up the opportunity to work a very coveted carrer track in the investment management business. It is my belief that I can sustain my results and use them to raise capital in the foreseeable future. But maybe I am being too optimistic? I know even 2 or 3 years of track record is a pretty small amount of time, even if the results look great. But surely if I sustain these results for 5 or 7 years, then raising several mil should be no problem? I just want to get some advice from people who have gone through this process about how realistic it is to raise a few mil based on a few years of trackrecord based on similar results. Maybe it was too much to ask for real advice from knowledgeable people on this forum?
I find you particularly annoying. Your posts display a high level of arrogance and ignorance at the same time. I will acknolwedge that such a combination can be entertaining to watch.
If you make it worth my time I can prove to you that these results are real. We can say, bet 5k on whether these returns are real or not, and transfer these funds to a reputable third party escrow service who will then verify my account statements, and transfer both deposits back to me.
You will most likely not agree to such a thing and continue to pollute my thread and others with your rambling.
rmorse
Sponsor
Right now you're at a Prime Broker. If you become a client of ours, you'll still be at a prime broker. The only difference would be the service that we offer at a small firm where each client gets person treatment. The extra services involved if you move forward with your plans, are from outside parties, not us. We only charge brokerage commission's and interest like other brokers. If that's more or less than you pay now, I have no idea.
You get our services included. We will have a vested interest in your growth through a bigger relationship.
Bob
Your max daily DD "P to V" is more important then DD based only on monthly returns. Based on your monthly DD I would guess that your P to V DD has been 20%+ which is good, but when it comes to get OPM it might create a chalange. If you are looking some realistic advice here, you need to explain how much your daily DD has been.
I'll save you alot of time and trouble and tell you.. Don't Bother.
Hundreds of succesful traders have gone this route and nearly everyone has failed, not because they did not perform, but because starting a fund with such small AUM will never amount to anything. Funds now charge 1% + 15-20% performance. Traders find that managing less than few million you're really making a plumber's salary. And when you're small, you'll stay small. No HNW will invest 7 figures in a fund where his assets are >50% of the fund's assets. You'll never grow by investors.. Your friends and family is the ceiling.
Funds should be created the right way which is to work for a reputable buyside firm, do that for 5 years at a minimum of $20 million under management in your book. Once you hit $50m, which is the line in the sand, people will find you.
For you, join a right prop firm. They will be your investor and increase your assets based on performance. After a year, they'll raise you millions in buying power at a much higher payout too. If you really do have what you claim in terms of returns past 2 years, many firms in Chicago and Ny will back you.