I Apologize if this is the wrong place to ask this question. Fund A has large short position and underwater on the stock. The stock is on the hard to borrow list (brokers are calling clients asking permission to lend out shares and offering rates). Can fund A sell the entire position to another fund out side of the market rather than covering. There must be a market value on the ability not to find shares to borrow. Comments?
no. the back office of his brokerage firm arranged the borrowing of the stock for this particular client. there is nothing to sell.
you need to decide what type of fund you are marketing. its one of two kinds; 1. stay rich fund 2. get rich fund this is critical and something that most start up funds miss. if you are not a major player, the stay rich fund is not for you, so that leaves the get rich fund. you will attempt to attract those investors who want to get richer, not simply stay rich. you need to have a real edge, unique niche--- not the same old thing every day trader is doing,. remember, everyone has a good record ( surviorship bias) do something unique, exciting, and profitable without seeming outrageous and you just may make it good luck, surf
good point. it seems for me that it is not easy to attrack BIG RICH GUYS to "stay rich fund", if you have good edge then it's more easy to attrack smaller clients to "get rich fund"
"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" Ok that is all well and good...but that performance most likely doesn't translate well to a hedge fund. You have to take into consideration that short-term strategies in the futures markets don't hold up when using larger numbers. Trading your own private account is very different from managing several hundred million dollars. A much broader approach to the market is needed when trading for a hedge fund.