How much should I charge the clients?

trend2009 · Jun 15, 2011

I also think about along the same line. if I charge them no matter anything, it could be bad mouthed.

Quote from trendo:

Alternatively, you could just give your friends and family some money. Trade your own funds and keep all the profits. That way you get the satisfaction of helping people out, no legalities, no worries about alienating people, no extra stress and everybody gets what they want.
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goodgoing · Jun 15, 2011

Quote from trendo:

Alternatively, you could just give your friends and family some money. Trade your own funds and keep all the profits. That way you get the satisfaction of helping people out, no legalities, no worries about alienating people, no extra stress and everybody gets what they want.
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Amen!...

chinook · Jul 23, 2011

By the way, are you trading equities or futures?

Lights · Jul 23, 2011

Wanting to be people's breadwinner is the worst reason to start a fund. You might stroke your ego better by starting a non-profit and helping autistic children.

Quote from trend2009:

I would like to start a small hedge fund which have some investors. the investors are mainly friends and family members. I know the standard fee structure in this industry is 2% for management fee, and 20% for high water performance fee. But in my case, since the investors are friends and family members, I would not like to sour the relationship in case of losses; on the other hand, they can not afford to lose much of their savings. As such, I would propose a reimbursement-based fee structure.

1) I will reimburse 50% of there loss.no management fee. how much should I charge for performance fee?
2) I will guarantee 5% return annually. no management fee. how much should I charge for performance fee?

many thanks.
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How much should I charge the clients?

trend2009

goodgoing

chinook

Lights