How big and long does a track record account need to be in order to be taken seriously?

Discussion in 'Professional Trading' started by zbojnik, Sep 4, 2014.

  1. convexx

    convexx


    f*cking LOL. You are 10Y past onset of Alzheimer's.
     
    #31     Sep 6, 2014
    Al_Bundy likes this.
  2. Turveyd

    Turveyd

    IMHO don't bother, trying to attract BIG money, they'll have you trading at such a low risk then you only get a cut of it, you'd be way better off building your 1K or 10K account into something reasonable which you can make more money off, without the stress of other peoples money!
     
    #32     Sep 7, 2014
    zbojnik likes this.
  3. zbojnik

    zbojnik

    I agree.
     
    #33     Sep 7, 2014
  4. 1245

    1245

    EPIC...excellent responses. Very accurate.
     
    #34     Sep 7, 2014
  5. Epic

    Epic

    There have always been laws against posting performance on a public forum/website in the US. It is considered "general solicitation". We are talking about Rule 506 of Reg D, Investment Act 1933 and the Exchange Act 1934 also applies. These regulations are common knowledge in the industry.

    Virtually every hedge fund operates under a Red D exemption so that they don't have to register as a public security (mutual fund). Almost all of them rely on rule 506, which exempts from registration so long as they don't engage in general solicitation. It isn't well defined but guidance has been issued which prohibits;

    • "advertisements published in newspapers and magazines, communications broadcast over television and radio"
    • "seminars whose attendees have been invited by general solicitation or general advertising"
    • "other uses of publicly available media, such as unrestricted websites."
    That has changed quite a bit in the last couple years with the JOBS Act. It lifted the ban on general solicitation provided that the issuer "take reasonable steps to verify the accredited investor status" of all purchasers. Most have opted not to advertise still because "reasonable steps" has been defined as things like collecting tax returns and financial statements from all investors. It's a big hassle and investors don't like it, so most funds still don't advertise. Go to 100 hedge fund websites, and mainly you'll just find a landing page with contact info, maybe you also see some press releases and research articles. In order to see performance you'll need to either fill out a form or contact the firm directly for a password or email.
     
    #35     Sep 8, 2014
    lenn tripp likes this.