How about starting a private fund?

Discussion in 'Professional Trading' started by mrman500, Oct 11, 2008.

  1. I am thinking about starting a private investment fund (limited partnership).

    I would seek investors and get a percent of the profits. I understand that investors get all the losses.

    I am up 296% this year on a small stake. Will that percent attract money?

    I envision a max fund size of $ 100,000 for 2009.
  2. Your account must be miniscule:D
  3. The $ 100,000 target is for funds from new investors.

    Yes, my account is small. But I am encouraged by my rate of return. I'm sorry if you find that objectionable.
  4. What's the point of raising 100k? Go to a prop firm and get 300k
  5. Thanks for the suggestion. I have wife, kids, home, and do not wish to relocate. I assume that prop firms do not offer remote trading plus I'm not ready to quit my day job in engineering yet.

    I have been trading options on corn with typical holding periods of 2-3 weeks using a pair of moving averages on the underlying instrument.

    I blew out a pair of $5000 accounts of my own money in the mid-90's. I think that I am wiser about limiting losses now and started this account in March of this year.

    My goal is to accumulate $ 300,000 in personal funds before leaving engineering.

    I have an MBA and traded physical grain from 1988-1990.
  6. Your assumption is incorrect.
  7. ggoyal


    thats true. let me tell you something about starting funds. while your perentage returns might be stellar, they won't account for much unless the actual numbers are large. try atleast 7 figures. atleast. that should be a starting point with which you could have an easier time raising money.

    you are talking about raising money from wealthy investors, they don't invest 10k or 50k. again, try more like 500k+.

    thats what i know and have seen. now if you raise money from friends and family its a totally different story.
  8. Thanks ggoyal. I plan to focus on investors among some millionaires that I have met previously in my life and through my career. My targets are not millionaires who are strangers to me.

    I plan to present this as a startup business as one would to a venture capitalist. My threshold initial investment is only $10,000.
  9. 12% a year with 2% draw down would be idea..

    your scary no one will want that..
  10. Thanks for the input Mark. Can you elaborate on your second sentence?
    #10     Oct 12, 2008