How do you start a hedge fund

Discussion in 'Professional Trading' started by peterhill, Sep 27, 2002.

  1. Does anyone here have details on how to start a hedge fund? Thanks!
  2. TigerO


  3. Thanks :)
  4. Tony01


  5. Thanks Tony
  6. Invoco


    There are four basic steps: First, you need to form the legal entity that will act as the actual fund (typically a limited partnership or limited liability company "LLC") and the entity that will act as the fund manager (typically a corporation or LLC) during this process you will also need to draft the "operating" or partnership agreement. Second, you must prepare the fund's private offering memorandum and admission documents (i.e., the documents that describe the fund and the requirements for admission. Third, you must file certain documents with the SEC and the states from which you will be soliciting investors. Finally, you solicit investors to purchase interests in the fund the proceeds of which become the funds trading capital.

    Most people seek professional assistance with this process from attorneys or consulting firms like mine. I would be happy to answer any more questions you may have. You can contact me at or 561-672-4905.
  7. thanks for the responses
  8. If its just a few people participating you can do an LLC. (True?) Is there a line or test at which you are required to form a hedge fund.
  9. Can anyone answer Puffy's question ? I am also interested in a response to this question. Thanks in advance.
    #10     Oct 1, 2002