Track Record

[jgfutures]

Quote from thebottomline:

i have heard that in order to legally use your track record in your private placement memorandum (PPM) when you eventually want to raise money, you generally cannot use the track record of an entity other than the one that is raising the money. thus, you can't use your pers a/c, for example. this is what Green Company claims on their web site, and therefore they are offering a hedge fund incubation service, where they set up a pretty simple LLC for you to trade out of. they can do this for only ~$4,000 or so, if I remember correctly, but you cannot accept compensation from your investors. when you want to start charging people a fee/carry, you will need to pay for a law firm to prepare a PPM. however, if you are raising money for your existing LLC, you can legally use its track record in the PPM and other marketing materials. this is what it says on Green Co's web site about their incubation service:
http://www.greencompany.com/HedgeFunds/HedgeFundIncubatorFunds.shtml
I have considered this option, but I don't know if they are right about whether you can use a track record from your own account (or a different account). i'd like to hear about other people's experiences or inputs about this issue.

I don't know if you are relating this towards equities only, but one can use his/her and family's money track record as a CTA.
In the Dis Docs, it must be highlighted that you have not managed OPM outside of Family, but you can use personal/family results in a performance report so long as it is identified as such.
I would suggest looking up some CTAs' Dis Docs on Google and note the difference.
The NFA and CFTC are fairly strict on what needs to be stated when including performance in Dis Docs. I would strongly suggest contacting the NFA or reviewing Series 3 materials to get clarification on this subject.

 

[jgfutures]

I would refer to this, then followup with NFA rep if you have any additional questions.

http://www.nfa.futures.org/compliance/publications/dd2001/DD2004.pdf#search='CTA%20disclosure%20documents'

 

[seekevinc]

Do you need to start working with a CPA at the start of the year you are having audited? Is it a daily or monthly thing? Or do you just submit your past years trading results and have them go over them?

Can someone recommend a good CPA for someone starting out and approx. fees.

 

[Boy Plunger]

Quote from seekevinc:

Do you need to start working with a CPA at the start of the year you are having audited? Is it a daily or monthly thing? Or do you just submit your past years trading results and have them go over them?

Can someone recommend a good CPA for someone starting out and approx. fees.

Your CPA is not who will audit your operation(s). It has to be an outside audit. Your CPA will reconcile your trades at whichever interval you choose i.e. weekly, monthly, and then you'll hire a firm that specializes in outside audits. Your CPA will know how to go about this so hire a good one.

If you are near Philadelphia or New York i can recommend one in each town. The New York guy won't deal with you unless you are a heavy but the guy in Philadelphia will take you on with any $$ amount.

Good Luck.