Hedge Fund, Private Equity or CTA

Discussion in 'Professional Trading' started by traderme, Sep 23, 2008.

  1. traderme


    I am a trader who is looking to start my own advisory service, currently I manage money for my self as well as some friends and family members, but now I am looking into forming either a Hedge Fund, Private Equity, or CTA.

    I did some research and it seems that to become a CTA all you need is a series 3 and registration with NFA.

    Could any one bring some insight on;
    What are the advantages or disadvantages of forming as a Hedge Fund or Private Equity?
    Is there any other way I can form my company in order to look for investors?

    My main issues is, I do not want to get mixed up on paper work and want to advertise to prospective investors.

    Any info would be greatly appreciated.

  2. JCVR


  3. traderme


    Thanks, I have reviewed that thread in the past.

    However looking for more hands on experience on the direct advantages and disadvantages on the Advising practice.

    Are there any other options in the Advising or Money Managing practice besides Hedge Funds
  4. MGJ


    The question itself is fallacious. There is no reason why you shouldn't do all three.

    Avoid the Tyranny of the OR.

    Embrace the Genius of the AND.

    (phrases coined by Jim Collins: http://tinyurl.com/3eg39s )
  5. traderme


    Thanks MGF

    The reason I do not want to do all three is because the paper work that comes with all three. I would like to choose one that would be adequate enough. Hope that makes sence.

    Interesting article though...
  6. The answer really depends on what you want to do and how you want to do it. Hedgies don't give advice and require accreditted investors only. CTA can get you around that.

    Sit back and decide what you want to do to start and grow / go from there.
  7. traderme


    I am looking to manage accounts. I know the word "Advisor" traps you a bit. However in reallity all of the money managers are sort of advisors, some are direct while others are not.

    If any one with knowledge on the subject at hand can point out some quick advantages or disadvantages or maybe even a different route that could be taken to come to the same goal of managing money for investors?
  8. Most investors don't like to see their money in a fund, because they think you may run with it in any moment (and sometimes happens). Stories of forged account statements don't help new funds, either.

    Managed accounts (CTA) provides the customers more confidence.

    So, IMO, start with managed accounts, until you have a name.