Starting a fund / raising capital

[rmorse]

Quote from chipmunk:

Geez mate for a pro. guy don't tell me you actually believed his results? RMOSE

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You need to start to establish returns your can market, possibly have audited in the future. Helping small funds is something we do well. My advise is to establish a relationship with an Introducing Broker like myself. Open an account for either an investor or a group of investors that will stay with you through the process. This can either be an LLC or an LP.

We can help now with the Introducing Broker relationship by setting you up with platforms and a prime broker. Monthly statements to show investors. Then when the time is right, introduce you to attorneys, administrators high net worth individuals and Fund of Funds. We can help you through the process.

Please contact me directly for more details.

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Unless I'm looking to make a direct investment, what benefit do I get out of questioning his statements? I traded for 25 years. Except the last year where I was looking to leave, my returns were better. I know many traders who did much better than me. If I was looking to make an investment, I'd look at his brokerage statements.

Bob

 

[doublet83]

Since I was responding to someone who extrapolated my historical returns over a period of several years, why should I not do the same with my own set of assumptions?

Predictions mean nothing, and I've said as much myself. My returns could easily be zero or negative over the next several years as I've acknowledged. Yet we will all make predictions anyway because we need a framework to try to understand where our lives our going.

No, I won't let you know if I blow up, because I will be very sad and the last thing on my mind will be to fill you in on it. But if I keep doing well maybe I will show up to gloat.

Quote from chipmunk:

B*S*!

Let me know when you blow up!

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I am aggressively targeting a scenario where I can compound closer to a 100% for the next few years, but you never know with this game - the actual returns could be zero or negative. Also my living expenses are about 50k a year right now or a bit higher. Almost all my gains are short term and you didn't factor in taxes. And I have about 0.73mm of capital right now.

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I think you are a dreamer kid!

 

[macintash]

Quote from doublet83:

I'm not giving you a peak to trough draw down. As I said in my original post, I'm giving you my max DD based on returns calculated on a monthly basis. Also, the down 2% was my worst day.

Based on your thread I assume you believe sharpe is a very important measure of performance.

You got it wrong. Sharpe might not be very imprtont measure at all, peak to valley based on "daily" returns is very important. Based on your monthly peak to valley I would GUESS that your daily peak to valley is 20-25% which is good but might be an issue for OPM.

 

[Rodney King]

OP should read thu "Far Hill Group’s Approach to Third-Party Marketing," an interview in the current Bloomberg Hedge Fund Brief. Addresses his questions from the vantage of an experienced, successful fundraiser.

 

[doublet83]

Quote from macintash:

You got it wrong. Sharpe might not be very imprtont measure at all, peak to valley based on "daily" returns is very important. Based on your monthly peak to valley I would GUESS that your daily peak to valley is 20-25% which is good but might be an issue for OPM.

You mean a daily swing of 20 to 25% of my account value? How is this good?

 

[operator]

Quote from rmorse:

Then when the time is right, introduce you to high net worth individuals and Fund of Funds.

What is your definition of "when the time is right"? Also how successful are your introductions?

 

[doublet83]

Quote from Rodney King:

OP should read thu "Far Hill Group’s Approach to Third-Party Marketing," an interview in the current Bloomberg Hedge Fund Brief. Addresses his questions from the vantage of an experienced, successful fundraiser.

I was not aware of this publication but I am very interested after reading some sample articles. But at 1k a year, I'll have to add it to the list of things to get if I make it big. Would this article and other articles from this publication be available on the Bloomberg terminal?

 

[doublet83]

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Quote from macintash:

You got it wrong. Sharpe might not be very imprtont measure at all, peak to valley based on "daily" returns is very important. Based on your monthly peak to valley I would GUESS that your daily peak to valley is 20-25% which is good but might be an issue for OPM.
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On second thought I can only assume you mean peak to trough draw down of 20 to 25% based on daily returns. I don't know how you would deduce this based on my worst monthly DD of 5%. I imagine that in your heart you wish for me to be hiding something, to have only achieved my results through taking on substantial risks. Only through this bias can you conclude illogically as I've presented no information to suggest such a large peak to trough draw down. In fact, my peak to trough draw down is in the order of magnitute of 8 to 10% during this period.

 

[Lights]

Quote from doublet83:

Thanks for the replies. Based on some credible comments and messages I've received, I am incrementally less hopeful of being able to raise any institutional money in the near term.

I suppose I may get lucky and find some one to invest a few mil with me despite the fact that I lack any organizational infrastructure, because my returns are very good, and because they happen to find me trustworthy. However, I am increasingly lead to believe that this scenario requires a bit of luck on my part. If any more people with some experience raising capital can add additional insight, it would be greatly appreciated.

Also, unless you have in-house or do it yourself, a capital intro marketer could raise money for you, but he takes up to 5% of the amount in a one time charge to you. The business is full of rabid individuals and you're just a tool unless you get to the big time.

I have a suggestion for you. Start a blog or website commenting on trades you take. Post trades and monthly/quarterly/yearly returns. Utilize social media like Twitter. You will surely get a following then, and you may be surprised to find someone willing to invest in you.

 

[Rodney King]

Quote from doublet83:

this article and other articles from this publication be available on the Bloomberg terminal?

BRIE |Go| 4 |Go| 10 |Go|, pg 14, is the article, and back issues are archived and available. Also you might read the QIM chapter in the new Schwager book; it's the closest parallel to your hoped-for outcome.