Registered: Feb 2002
08-02-12 02:57 PM
Well, it's not from us directly per se...
As traders ourselves, we've built up a pretty extensive contact network over the years, including capital allocators, prime brokerage providers, prop desk managers, family office managers, high net worth investors etc.
The funding opportunity is from a capital allocator we know and trust who funds traders professionally and also handles upstream introductions for them.
Their ultimate goal is to find the next emerging manager who starts with a couple hundred k, gets a bump into the millions with the allocation program, and then makes it into the institutional end zone with $50MM, $100MM, more etc.
The allocator -- who is a bit publicity shy, and busy -- has asked us to provide introductions for them, which we are happy to do as we further build out our own network of fellow traders. The revenues we get aside from our own trading activities allow us to fund new market research, trading dev software projects (some big stuff in the works there), and other things. Plus it's just a hell of a lot of fun.
Bottom line, it's a legit program and not some funky loss leader... the allocator will scrutinize your track record to be sure, and they will want you to take risks as well (to show you're serious), but their end goal is to find successful traders who they can first stake on allocation terms, then later make a traditional investment in, and final stage get them institutionally capitalized.
There's no risk to kicking the tires either, other than a couple phone conversations... assuming there's a track record worth talking about...