Advice on Staring a Hedge Fund

Discussion in 'Professional Trading' started by futurestrader1, Sep 26, 2010.

  1. If anyone out there could give some advice on starting a hedge fund that would be great. I know there are some really helpful links on this site in regards to formations of hedge funds. If anyone could recommend some good ones that would be great as well.

    I'm 34 and have 100k in my trading account. I've been trading for 10 years. I currently have a 1 year track record on 15k (which I generated a 70% return on). I traded micro and mini forex, mini futures as well as full futures and forex.

    Within my track record I guarantee to not lose more than 7% of the initial capital. If at any point the fund dips below a 7% loss I return everyone's capital and walk away.

    How I did it was in the beginning I would risk .5% of total capital on each trade ($75). In order to be down 7% I would have to have 13 consecutive losing trades.

    I started out very conservatively as my profits came in I opened my positions with slightly more risk. Going from micro forex to mini forex to mini futures and eventually into full futures and forex.

    I feel I could have actually made a guarantee of 3.5% rather than 7%. That would be 6.5 consecutive losing trades.

    I'm fairly entrepreneurial. I own an energy consulting firm that is generating 400k in net revenues. We are still new 1 year old and this upcoming year are expected to quadruple our net revenues with the addition of 3 more sales reps. I keep my profits from my company in reserves and would actually like to reinvest the reserves into my fund. Since my fund will be ultra conservative and having very little risk of initial capital.

    I'm also pretty well educated having a decent degree from a major university and currently working on an MBA from Temple which is ranked top 50 in the nation.

    I want to start a hedge fund but obviously don't want to spend 150k on the formation of it. I was wondering if anyone could give advice on how to spend the least amount of money to get it started.

    I don't know if I want to do a full hedge fund because I could only deal with accredited investors having to have a net worth of $1 million. I think my best bet may be to form a CTA or CPO and have the option to deal with any size investor.

    If anyone has any good advice is would appreciated....Thanks
  2. Most hedge funds lose money.
    You'll blow up your own money, and will be hiding from irate investors who lost their money.

    You have been warned.
  3. There is already an active thread going about this same thing. Search is your friend...