Hey guys! I've been trading a couple of years for myself and managing investor funds, but never actually been in the business "professionally". I've received offers from a number of hedge funds in UK and US to completely manage their funds and work as a head trader, and hire and train new traders for them in the future. My question is, what is a "standard" deal for such a position? Management fees? Incentive fees? Salary? Percent of profits from the traders in my group? Appreciating any guidance and help. Regards, Alex
HI ALEX what is your "track record" that would make H.F.'s be in such a frenzy for your services? good luck to you in whatever you decide . -I've been trading a couple of years for myself and managing investor funds, but never actually been in the business "professionally".- -I've received offers from a number of hedge funds in UK and US to completely manage their funds and work as a head trader, and hire and train new traders for them in the future. -
It is all about connections. I know a few people who allocate for fund of funds ($6B and $1B) and they have often suggested that I set up a fund even though my results are variable and not that impressive. Not interested.
If you have successfully traded for 2 years, then you should be smart enough to find answer to your own questions easy.
Here were my answers for ME.... I have not even had one real offer that amounted to anything. I am told it is because I do not trade equities, but Retail Spot Forex. I do not have connections or ANY friends to speak of. At my age, I have learned that no one helps you and that independence is freedom. Wifey and I have are own idea of fun, I guess. After hearing about the politics of the SUCCESSFUL big name hedge funds, I concluded, I was not hedge fund material. After reading about all the prop shops and their need to find upfront money because of the new regulations, I concluded, I was not Prop Shop Material... After trading OPM as a CTA in the ES two years ago for a system vendor and his website, I concluded, I was not CTA material... I trade my own money....I have no one to answer to but myself. I am free to be creative in a constructive way without being a political pawn... or a slave to the cause....or a glorified telemarketer. Michael B.
Here's my take on it. Electric is an eccentric... Picture this. He drives a 1990 Plymouth Voyager with simulated wood grain siding, and treats it like its his Hummer. He sits in the little room by the kitchen and off to the side of the living room of our little 453 sq. ft. studio condo in Denver, CO. working in his home office for a company full time and trading part-time in between phone calls. To walk the walk...you need a college education, contacts and to wear a suit and drive a respectable car! If thats what you want out of life, like a good job, respect, prestige... Wifey When Electric buys a new work suit from Costco, they have the label ...Joe Boxer
Hi! Thanks for the PM's and replies.. They've been very helpful.. Many people have sent PM's on how to approach HF's and get offers... I've basically built a very solid and profitable track record from -98; trading equities, futures and FX.. I've never lost touch with any of my brokerage firms - always kept a good relation with them, after all they got the right connections and know "where the money is"... They have introduced me to all my clients and now the hedge funds too.. So the only important things are: 1. Trade like a winner for a couple of years 2. Network with everyone in the business - and also lose everything you own at least once, that'll make you grow hair on your chest (no offence ladies) Happy trading u all! Reg, Alex B
Electric does sound eccentric, but he also sounds like he knows it and he's honest about it. Can't fault him for that. I trade my own funds independently also. There is a lot to be said for the freedom of doing business unfettered by partners, investors, managers,etc. I spent a number of years years at two hedge funds, and then into fund management. The standard arrangement for a hedge fund "affiliate", that is one who is funded by a hedge fund is: 40% of the incentive fee, or some permutation thereof.