Starting a Hedge Fund
- Thread starter ktm
- Start date
LOL, LOL...truer words were never spoken...fewer of each, and less money as well. "trust me on this one"....
LOL
Don
Are you saying Don would let his "hedge fund customers" lose his money for free? I'd like to see the math posted for a few mil from clients at 25% a year vs. Don giving someone a free few mil a year with the same results.
Would someone be better off going with Don or on their own?
Don,
Why don't you tell us about some of your hedge fund customers and share some of the success stories...tell us how you funded them and they became wealthy from trading your capital instead of "investors" as you say. Where can we view some of your hedge funds returns?
Evidently you're missing the whole point. Yes, we have "hedge funds" but very few...because we can usually provide better services AND capital to licensed individuals.
We don't prefer hedge funds in Bright Trading (we "accomodate" them in Bright Securities, based on certain performance criteria).
Let's try it again, from the top:
A. Good Trader...plans on making money. Needs $1Mil or two to trade with...."borrows money" (starts "hedge fund"). Raises one million. Keeps $20K "off the top"....makes $200,000, gives away $160,000....total income = $60,000.
B. Same Good Trader: Puts up $25,000, uses $1Million, makes $200,000 , keeps $250,000...net difference Up $140,000. Perhaps he pays for overnight use of capital...maybe even $20,000 or so...still way ahead.
And...you get much better tax treatment as a K1 trader than a hedge fund. And, it costs $10K or more to handle the legal hassles.
That's pretty much it...some choose A, some choose B.
Poor Trader, starts hedge fund, keeps 2%...gets yelled at by investors...bummer....LOL
Poor Trader, starts with $25, loses money...yells at himself ...LOL
Just simple business structures....get past all the "labeling" ... money in, money out...percentages...that's what it boils down to.
Don
Quote from Don Bright:
Evidently you're missing the whole point. Yes, we have "hedge funds" but very few...because we can usually provide better services AND capital to licensed individuals.
We don't prefer hedge funds in Bright Trading (we "accomodate" them in Bright Securities, based on certain performance criteria).
Let's try it again, from the top:
A. Good Trader...plans on making money. Needs $1Mil or two to trade with...."borrows money" (starts "hedge fund"). Raises one million. Keeps $20K "off the top"....makes $200,000, gives away $160,000....total income = $60,000.
B. Same Good Trader: Puts up $25,000, uses $1Million, makes $200,000 , keeps $250,000...net difference Up $140,000. Perhaps he pays for overnight use of capital...maybe even $20,000 or so...still way ahead.
And...you get much better tax treatment as a K1 trader than a hedge fund. And, it costs $10K or more to handle the legal hassles.
That's pretty much it...some choose A, some choose B.
Poor Trader, starts hedge fund, keeps 2%...gets yelled at by investors...bummer....LOL
Poor Trader, starts with $25, loses money...yells at himself ...LOL
Just simple business structures....get past all the "labeling" ... money in, money out...percentages...that's what it boils down to.
Don
whole lotta b.s.
Quote from Don Bright:
Evidently you're missing the whole point. Yes, we have "hedge funds" but very few...because we can usually provide better services AND capital to licensed individuals.
We don't prefer hedge funds in Bright Trading (we "accomodate" them in Bright Securities, based on certain performance criteria).
Let's try it again, from the top:
A. Good Trader...plans on making money. Needs $1Mil or two to trade with...."borrows money" (starts "hedge fund"). Raises one million. Keeps $20K "off the top"....makes $200,000, gives away $160,000....total income = $60,000.
B. Same Good Trader: Puts up $25,000, uses $1Million, makes $200,000 , keeps $250,000...net difference Up $140,000. Perhaps he pays for overnight use of capital...maybe even $20,000 or so...still way ahead.
And...you get much better tax treatment as a K1 trader than a hedge fund. And, it costs $10K or more to handle the legal hassles.
That's pretty much it...some choose A, some choose B.
Poor Trader, starts hedge fund, keeps 2%...gets yelled at by investors...bummer....LOL
Poor Trader, starts with $25, loses money...yells at himself ...LOL
Just simple business structures....get past all the "labeling" ... money in, money out...percentages...that's what it boils down to.
Don
i agree with don on this point regarding undercapitalized hedge funds . don't even consider the hedge fund route with less than 10 million STARTING capital. the head aches and traditional profit sharing arrangements make it impractical for lower capital amounts. now, over 10 million STARTING capital, the hedge fund structure is the way to go.
however, i don't understand your part B. how can the trader make 200k but keep 250k ??
best,
surfer
and for the record.....some idiot trader with no track record, is going to get funding from prospect clients for a hedge fund.
The legal fees alone are almost 40g, and to top it, SLK isnt gona be ur clearing firm as a scrub startup, ur not gona get great leverage either as a no-name........the hedge fund process requires a lot more than just raising the captial...that is the easy part.
All this hedgefund talk on ET is hot air.
How do i know about hedgefunds...because i trade for one now.
The legal fees alone are almost 40g, and to top it, SLK isnt gona be ur clearing firm as a scrub startup, ur not gona get great leverage either as a no-name........the hedge fund process requires a lot more than just raising the captial...that is the easy part.
All this hedgefund talk on ET is hot air.
How do i know about hedgefunds...because i trade for one now.