How do Hedge Funds get around the 90% Failure Rate?

Discussion in 'Professional Trading' started by Nagarjuna, May 29, 2007.

  1. Don,

    Does one need a series 7 and 63 license or any licenses to start and run a hedge fund?
     
    #21     May 30, 2007
  2. Dude... if you're asking questions like that you shouldn't be posting opinions like you know what you're talking about.

    The answer to your question is depends. Each country has it's own guidelines of required licensing and how the business is conducted. Licensing depends on how the fund will be structured also. LLC/LLP, # of investors, etc. etc.
     
    #22     May 30, 2007
  3. ssss

    ssss

    #23     May 30, 2007
  4. ssss

    ssss

    nitro


    I believe a combination of #1 and #2 is the right mixture. However, a trader that monitors the ATS and can turn off a given symbol based on news etc is my #3.

    So I say #1 + #2 + #3. If I had to choose only one, I would always choose option #1, but funnily enough the research should be performed by #2's.


    Point 1 - Game theory and statistik stated ,that
    professional homo sapiens performed better.

    And can not be another - As operator must react to
    speedy changed condtions (evaluate change)

    By Department of the state ,CIA ,Department of the Defens
    function of analysis , conzept development and implementation performed from homo sapiens ,not from computer . Last only
    used as tools ...

    Point 2 MBA -highly intelligent...

    ? It is formalism . They are studied some ,which based on Aristotel reason ,not more ...

    They have average intellect in mass (95-98%)

    MBA for this group only conditions ,which secured top
    payement .
     
    #24     May 30, 2007
  5. nitro

    nitro

    Is ssss the new murray_turtle?

    :confused: nitro :confused:

     
    #25     May 30, 2007
  6. ssss

    ssss

    Is ssss the new murray_turtle?
    ##########################

    They are belong to scientology.Author is scientific ateist .

    It is different .

    Scientology- Closeley observed by each european authoritie's
    And author think full correct.
     
    #26     May 30, 2007
  7. ssss

    ssss

    One of the main points of "The Way of the Turtle" ==>> position sizing and risk control were major factors in their success.

    It was not from Turtle originaly .
    #############################

    Floating bet can be usefull only for highly experienced operator

    Ken Uston -Big player


    Independent ,what you think about moral ,but K.Uston
    was experienced with stock( he work before casino in Pacific
    exchange as VP) and game theory .

    But all ,what he performed ,theoreticaly was based on work of A.Puankare ,J.von Neumann ,Schannon .

    It would not the case for any operator,if he would read this books ,that he can perform the same .

    All knew how M.Schumacher drive ,but most of the spectators
    can not drive as M.Schumacher

    Talant ,experience, readiness to risk,game theory
    (talanted Senna is dead)

    http://www.alainrobert.com/photosmontagne/ar-11-nvlle-ange.jpg
     
    #27     May 30, 2007
  8. It's very interesting to see how people are single minded.

    I'll stick around for just concentrating on the trading side of hedge funds...

    Definitely. It's alot easier to control risk when thing are coded and automated. You already have a market risk to consider. Adding discretion will only increase operational risk.

    Sure. I wouldn't expect an average retail trader developing models or running risk analysis. It's also great for marketing to tell your clients you have # of top tier Ph.D.s and MBA.

    One word: Amaranth.

    Are you talking about hedge funds? Who'll invest in you?

    Yes, if mean for training. Though, it's going to be extremely intense and high turnover rate... it already is...
     
    #28     May 30, 2007
  9. I'm talking about for the US, not any other country.

    What licenses are needed for an LLC?

    What licenses are needed for an LLP?

    How many investors do you need to have at least before you need a license and what licenses would you need?

    I need more detail.

    Also, what are the average start-up costs and annual on-going costs to run a hedge fund, assuming that it's a 1 man shop?

    My goal is to be managing $1 billion one day, working from home, 1 man shop; that way, I have plenty of time to spend with my wife and daughter. Plus, I don't want to spend time commuting in rush hour traffic to an office.
     
    #29     May 30, 2007
  10. You dig up the $billion, I'll take care of the licensing for you..."first things first"....

    Don :)
     
    #30     May 30, 2007