Hedge Fund

Discussion in 'Professional Trading' started by midlifeguy, Aug 20, 2006.

  1. How much capital can be raised with reasonable expectations? I have some superior programs for trading the Russell
    #11     Jan 23, 2007
  2. What do you know about Hedge funds?...How long have you been trading?
    #12     Jan 23, 2007
  3. Reasonably functional grammar and spelling are prerequisites to launching a hedge fund.

    Well, OK. Maybe not.

    Just busting, T.
    #13     Jan 24, 2007
  4. ozzie123


    Well if by hedging you mean minimizing risk, I'm currently doing it (albeit not on corporate level, hedge management of my own fund :p).

    With alot of hedging strategies you can formulate these days (because of increasing financial instruments), the only problem you will face is how to find clients big enough to cover your monthly overhead expenses.
    #14     Jan 24, 2007
  5. qtip


    Can anyone share the best way to raise capital for a hedge fund? Unlike a CTA, I know you can't advertise for funds.

    Any help would be greatly appreciated.
    #15     Jan 24, 2007
  6. for starters, whats your track record like? at what stage are you right now? responses will vary accordingly... but you'll need a track record for people to put you up on their databases or to want to make intros for you...
    #16     Jan 24, 2007
  7. i am thinking of starting one, and I am posting my trades and thinking on my blog right now as a start. maybe somewhere down the line i will get some people together to launch one. gotta prove i have the goods first http://lauristonletter.blogspot.com/
    #17     Jan 24, 2007
  8. ok, suppose I have 2 years track record trading my own money, performance something like 70%-100% ann.
    Where and How can I advertise my performance to attract clients?

    starting a fund itslef doesn't looks too expensive today
    #18     Jan 25, 2007
  9. traderob


    You can't advertise using performance that was prior to starting the Hedge fund. And even once you have a track record there are strict regulations about marketing.
    #19     Jan 25, 2007
  10. 1. Get audited statements, spanning a 2-3 year track record. Don't try to save money with cheap accountants. It will only backfire later.
    2. Positive results and low DDs help... a lot
    3. Get Friends and Family money, try to get mouth to mouth propaganda to attract some "local" capital. There is obviously limited potential here, but it can give you some initial mass to cover costs.
    4. Once feasible, get an office + start to build a backoffice (=people). If you want to attract money outside of F&F nobody will invest if they can't see a brick&mortar facility with at least 4-5 people. If you're automated, think of backup plans that investors will want to see. What do you do if your servers freeze during market hours? What if you lose data (offsite backups)? What do you do if broker #1 goes down? What if your trade execution monkey bounces, do you have a backup guy ("key personnel"). Yes all this costs money, lots of money... Make a list of potential questions YOU would ask if you had money to invest into somebody you didn't know nor trust.
    5. Get listed in databases with your audited results. IASG.COM is a good start. Barclays Group another.
    6. Don't make the mistake of charging no annual fees or performance fees that are "too small". Investors will wonder why you charge way less than the competition.
    #20     Jan 25, 2007