Do any Incubator Funds or Hedge Funds...

Discussion in 'Prop Firms' started by LVtrader35, Jul 5, 2008.

  1. ....Operate their model via a prop? I realize if so, it would be a fund who is below the $25/$30MM figure and would not be registered with the SEC or the state they reside in as RIA...any thoughts? Would the prop and their clearing firm be the "prime broker" if it was set up this way? What if the fund was over the $25/$30MM figure, how would the SEC via this?

    As well, if the above model is currently in place, I would think the best way to structure this would be to have the hedge model set up as an "offshore entity" to skirt the current prop industry challenges. Am I on the righ path?

    I would very much like to hear from the group who runs either a current fund or a prop firm who has the structure in place. Mainly would like to know if both equities and futures are being trading on your platform(s)?

    Thanks -
  2. meir13


    There will be a few negatives on this.
    1. Very likely that you funds wouldnt be segregated from prop firm ones.
    2. As offshore entity you will be subject to the US taxes on capital gains.

    If you like this way try Vtrader, very good for US based funds. For me as offshore fund didnt worked out.
  3. Thanks Meir...does Vtrader offer equities too?

    Are you or did you use their services and if so where you happy with the results?

    Thanks -
  4. meir13


    Yes they do equities as well. I cant help you with any real experience. Call Chicago or NY office for more.