A lifeguard was killed on the Jersey Shore today. Struck by lightning. Should entered the trading comp instead. Just as good a chance.
One is luck, albeit bad luck; Unless you're trying to get hit by lightning then a lifeguard tower is a good place to be. The other is skill.
minimum capital needed around $2-5 million given you need to be charging between 2-5% management fees in order to get $100,000 p.a. to support yourself and any technology you require. Typically a hedge fund has it's assets in a holding company in the Caribbean through a feeder fund such as partnership in the U.S. with the performance fees and management fees paid to a Delaware company, the best way to fund the operation is by lending a vast majority of the money to the company instead of investing it that way if you invest $10,000 and lend the company a further million that way you have essentially invested $1,010,000 but when it comes to CGT you can withdraw any of the initial loan of $1 million tax free given that you have not earnt any interest and therefore taxable income on the loan, the Delaware company pays for fees and operating costs like technology such as a Bloomberg or Eikon terminal or whatever your EMS provider is however to use this technology your holding company typically requires at least $5 million minimum to have a prime brokerage account from an investment bank. However if your running a hedge fund often best to get DMA to NASDAQ or NYSE as well as access to bonds and FOREX through your EMS like Bloomberg or Eikon if you are trading futures Eurex membership or CME direct is required however if you don't have the money required best to just stick to IBKR products with a friends and family account, legal advice is worth it when starting a hedge fund.