Advice on Staring a Hedge Fund

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

  1. lasner

    lasner

    400k net revenue....I have expenses to that. I like to trade and have an interest in developing a legit hedge fund.
     
    #31     Sep 27, 2010
  2. Well put your own money into it and do it for a few years. Bring it to the point where it would be your focus instead of your energy consulting business and investors would look at it seriously, assuming the returns are there.
     
    #32     Sep 28, 2010
  3. lasner

    lasner

    I'm starting a CTA with interactive brokers. That will get the ball rolling. Then in a year or two try a hedge fund
     
    #33     Sep 28, 2010
  4. heech

    heech

    Do *not* call yourself a CTA unless you've already passed your series 3 and registered with the NFA. I believe there are legal consequences.
     
    #34     Sep 28, 2010
  5. I think he said he was "starting" but yes you have to be careful not to hold yourself out there as such until EVERYTHING is in place... getting set up with a broker is the least the work in front of you.
     
    #35     Sep 28, 2010
  6. Yes, that's about right. The higher end of those ranges would be too rich for a manager who already had some traction / visibility / success, but wouldn't be out of the question for a room-over-the-garage operation. Re "hundred parameters", really it's one parameter -- how tough a sale is the product?
     
    #36     Sep 28, 2010
  7. Do not start one unless you have worked in an investment bank or broker running one and you know all the details.

    Do not trade OPM unless you have worked in an investment bank or broker doing it and you know all the details.

    Trading money is not a scalable business. It is highly probable that your one year positive performance is by pure luck. There is a 99.999% chance it cannot be scaled to larger amounts.
     
    #37     Sep 28, 2010
  8. heech

    heech

    No offense intended, but that's a horrible post. I disagree on every point.
     
    #38     Sep 28, 2010
  9. With $100,000 you can start a hedge fund for university students.
     
    #39     Sep 28, 2010
  10. I disagree with your disagreement. So what? Do you have something better to say to a guy with a one year performance on 15K who has the ambition to trade OPM without having any professional exposure to the business other than his own retail account? NO series exams and no experience as a CTA. Or are you so naive (no offense intended)?
     
    #40     Sep 28, 2010