Most sophisticated hedge fund investors the one who really have the money will not fit the above description. Those who invest in hedge fund have had experience with the product for some time so they understand the intricacies of the business and are not likely to call everyday, according to most people whom I have spoken to in the industry.
The CTA route is really the best option. We have one in registration currently and it really a very easy process. We can manage accounts and also introduce traders to the FCM. Really the best option.
Too bummed over Giant's heartbreaking loss (and this only 2 nights after the 'Canes)...and this again in addition to too much beer (ok..a shooter or 3 of Kettle One)...so I am not in my usually razor edge state to answer the question in a coherent way...but I am looped enough to try. Trade your own money. Establish a track record. As was said here before, money follows money. You may trade other people's money without being a "hedge fund" and complying with the rules of such. You, however, may trade the accounts of individuals with discretion. Don't even need a license (I believe). If you do well that way, you can eventually write your own ticket. The thing about "discretionary" trading, can be and more often than you would think, is actually getting paid. (See my thread "Getting Paid" which I did under the "Menace" alias). Now maybe it is easier to get paid if you are smarter or less trusting than I was. My obvious mistake was hiring the lawyers for the partnership that paid the legal bills. I didn't have my own lawyer. I hired them, but I didn't pay them. So it goes. If I were to attempt "managed money" again, I would have a lawyer as a partner. (possible new plan). As I said, too much to drink. But these are my extemporaneous thoughts on the subject. Excuse the inebriation. Oh, another thing....which is crucially important!!!!!!!!........never mind...I forgot Peace, rs7
You know it's funny that you should mention that. I'm about to graduate from college, and my dad is really pushing me to go to law school, which I normally scoff at, but the more I think about it, the more I realize there may be some utility in becoming a securities lawyer. The trouble is that to get any decent experience in securities you have to get a job with a huge prestigious law firm, which means graduating from a top 10 law school and/or the top 5% of your class. Not an easy feat... At any rate, if things went well trading, I suppose securities law experience would be invaluable for moving into "managed money." Oh, and by the way, my original question was completely hypothetical-- I'm no where near the point of starting a hedge fund.
And on another note, does anyone know of some organizations that track hedge fund performance? Are there many? Is there one which is very popular in particular? Where would one post his performance results exactly?
I knew he was blowing on the Whores the whole time I was reading the article. LOL..... 40 million on whores. Damn...
LOL... loser acting like a loser... Look at Russell Simmons from Def Jam, that cat's butt ugly but even before he had a empire, he knew how to get laid... Funny stuff... but... I hear it all the time... History repeats itself... and human nature never changes. Women, Drugs, and Alcohol is the biggest reason for destruction. Psycho, Groupie, Cocaine, Crazy... ============================= Anyways, funding for a hedge fund... I guess there's a few criterias of a successful fund raising... 1. Network. It's who you know. 2. Performance. ROI, consistancy, and etc. 3. Diversification. Being different is a good catch. 4. Personality. 5. Size. Larger it is, the more reliable it seems.
Many people have the audited trading records which would be a great help in establishing a hedge fund, but they consciously choose not to... For me, trading is about freedom... freedom from anything but responsibility for my own funds, freedom from bureacracy, freedom from career difficulties resulting from business relationships going sour, freedom from the stresses of having to worry about other people's issues... The moment you switch from trading your own funds to running OPM, the above constraints rear their head... if such constraints are not an issue for you then setting up a hedge fund may indeed be a great idea... but not for me... I am content with my lifestyle, a lifestyle based on accountability only to myself...