Starting a fund / raising capital

[doublet83]

Results YTD have continued to be very strong: currently +58% and 318k. New developments lead me to conclude that I want to move down the path of managing OPM this year, versus prior expectations of doing so several years down the line.

I would like to start researching issues of structure, regulation, etc. Any assistance on how to start would be appreciated..

 

[rmorse]

Quote from doublet83:

Results YTD have continued to be very strong: currently +58% and 318k. New developments lead me to conclude that I want to move down the path of managing OPM this year, versus prior expectations of doing so several years down the line.

I would like to start researching issues of structure, regulation, etc. Any assistance on how to start would be appreciated..

Contact me directly. After I have a better understanding of what you want to accomplish, I can make some suggestions including a firm that specializes in the start up docs and regulatory filings.

Bob

 

[shopster]

Quote from rmorse:

Contact me directly. After I have a better understanding of what you want to accomplish, I can make some suggestions including a firm that specializes in the start up docs and regulatory filings.

Bob

the OP is trolling and y'all got sucked in.

s

 

[dtan1e]

i don't think the OP's performance is beyond the realm of possibility because i've seen such performance for other periods but its highly unlikely it can be sustained for long, given such low DD, there's a certain element of luck here, as to daily DD not sure what good it does when the OP is only interested in mid to long term holding period and could care less on daily gyrations unless it hits his stops, i haven't actually calculated it but someone here deduced a smaller monthly DD converts to a higher daily DD, normally isn't it the reverse?

 

[doublet83]

Quote from shopster:

the OP is trolling and y'all got sucked in.

s

I'd rather not spend too much time on this subject. Prefer to focus on extracting some useful information. Whether or not you believe I'm BSing has nothing to do with the questions I'm asking.

I've already offered to wager around 5k USD that my results are real and can use a reputable third party escrow service to serve as the arbiter.

I've also previously mentioned Z as my biggest long position by a substantial margin, calling out the earnings event as a catalyst. Z has since reported good earnings and rallied about 12% that day. Not that any one call means much, but still.

While I feel somewhat compelled to defend myself against those types of accusations, I'm getting a bit bored of repeating myself, so I may start ignoring some people going forward.

 

[shopster]

Of the world’s 351 funds with more than $1 billion in assets, 143—or 40 percent—are based in Greater Hedgistan in Greenwich, Connecticut.

New hedge funds are formed when the prospect of superior compensation pulls employees of large investment banks and existing hedge funds away from the mother ship to set up their own trading outfits. But this outward force is balanced by a centripetal force.

The gravity of the larger mass makes it difficult to build successful funds outside the orbit of Greater Hedgistan.

New hedge funds require face-to-face access to specialized services—flacks, fund-raising consultants, lawyers, accountants—as well as to the institutions and individuals that supply capital.

The first law of hedge-fund dynamics is that most people who start hedge funds don’t wander far from familiar turf.

This is partly because traders are loath to give up hard-won co-ops and nursery-school spots, and partly because they are superstitious creatures of habit. Says one fund manager who set up shop three blocks away from his former employer, “Instead of walking out the east door of Grand Central, I now walk out the north door. And I still take the 4:18 home on Fridays.”

The second law of hedge-fund dynamics—also known as the narcissism of small distances—is that hedge-fund managers seek the shortest possible commute that doesn’t involve working at home.

cheers,

s

 

[traderslair]

With these returns there is no way you are looking into managing others people money. With these returns you have your dream life and you are laughing every day.

So cut the crap, post your statements in a screenshot right here. Cut out your account number but your next post should be your statements, or shut up.

 

[shopster]

you know that's not gonna happen.



s

 

[heech]

I'm on the side of people who say you should find a service provider, and start building your operational infrastructure. If you're trading securities, the various registration requirements for accepting onshore money is pretty serious. Sooner you get started, sooner you're ready to move on to the next phase. And you'll find cost isn't really that significant when you're trading this much of your own capital.

With these results, absolutely a few million in the next few years is extremely likely. Raising more is also very viable, but most will want 3+ years of audited results. And audited results of personal trading is simply nothing like audited results of the fund/partnership. If you can get to 3-4 years with performance even remotely this good, I'd be shocked if you had less than $20mm.

Fwiw I don't have any reason to doubt your numbers.

I say this having launched my CPO two years ago, with assets finally having some hope of crossing $10mm this year, but still largely dependent on my own trading rather than fund raising.

 

[cornix]

OP, does max. monthly drawdown of 5% mean your worst month finished in red by 5% or something different? Could you please elaborate.