Finding investors to start a hedge fund

Friends and family is your best bet. Pool together a couple hundred k, run it for a few years. If you're lucky and can trade through a bear market successfully you will have a good track record to use in the future. If you did well did you can start marketing to outside investors in a few years.

Sorry if that sounds like a slow process but that's how it is.

 

I would NEVER do this. Did it once and had major problems in my family. Better take strangers.

 

Agree. Its never smart to mix family with business--- it "may" workout but the downside is tremendous.

 

Do you think strangers would be more benevolent to you losing their money than your family members?

 

I started my trading business with a loan from my parents in January 1985. Sometimes you have to make hard choices. Paid them back within a year.

 

Hedge fund investors should be well aware of the risk. In fact, that's the law.

Family members often invest because they "like" u and are unaware of the risk.

 

That's a rare feat in the real world. Kudos to you!

 

1. I believe the law is for the hedge funds to disclose the risk to the investors.
2. I also believe that when family members are not aware of the risks this is b/c they were not sufficiently disclosed.
3. Unhappy investors will destroy your business anyway. So not much of a difference.

 

Docs are usually vaguely worded, and few investors read them anyway. The real risk is fraud/thievery, which of course isn't disclosed in any docs.

 

in a country that we don't if it will be around in 5 years...