Finding investors to start a hedge fund

1st thing, get some money (at least 100K) and build a real track record trading real money in a separate account. Back testing doesn't mean jack. Personally, I'm not a fan of quant strategies because they work until they don't. Seems like quants are always making excuses and tweaking the models. Investors who add value put in the hours and do fundamental bottom up research in my opinion. Shortcuts in the investing world rarely work for the long term.

No potential client has ever seen bad back testing numbers because managers tweak their formulas to make them look good. A real track record is all that matters.

If you can dig up a million or so, you can look into a turn key hedge fund setup based on "first loss" money. Essentially you put up 1 mil and a client puts up 10 mil and you have a real hedge fund. The catch is, you eat the first 1 mil in losses. They get 10% free downside protection in return for seeding you.

Lots of options. Not sure why you want offshore... That makes me curious.

We've been in a 7 year bull market which isn't representative of history necessarily. I'd be careful thinking back testing is representative.

Good luck.

It would be a lot cheaper to set things up as an RIA running separate accounts initially to prove your process works

 

While it's almost certainly not realistic for you to raise capital at this stage, given the info provided - I'm curious; why do you want to start an offshore hedge fund in particular?

 

Could you please share approaches how to trade Other People Money and I mean big investors (more than 250k USD) in Forex markets.

From what I researched I see such possibilities:

1. Broker's PAMM account (but it is not regulated in Europe?) - but how to market it? How people will invest in your account?
List of such brokers: https://www.100forexbrokers.com/mam-pamm-lamm
2. Start asset management company, but this costs a lot of money, energy and time. Must be regulated by FCA etc.
3. Something like fundseeder dot com. Platform which introduces traders to big capital.
4. Prop trading like this: https://fxfinpro.com/en/prop-trading

Any other possibilites? Do you have any story, links, research where to learn more on which path to choose.

 

The www.interactivebrokers.com friends and family account will let you link 15 accounts.

 

Thanks! What about help in marketing to other clients? IB helps with that?

 

Don't be jealous, just do it yourself.

1. No, i become a partner in the funds and participate pari passu with the investors/ funds profits

2. No, several hedgies and investors were impressed with my insight and thst got the ball rolling.

3. Wtf? im educated as a lawyer, but never heard of this regulation.

 

Interactive brokers bought www.covestor.com which will find investors for you.

http://www.prnewswire.com/news-rele...cquired-by-interactive-brokers-300071380.html

 

Thanks, but it seems it is geared towards USA and I am in Europe:

http://take.ms/Moplj

 

Covestor was founded in London. Call them.

 

I sent them email with this question, if non-registered trader and EU-citizen can manage funds at their website.