Hi. I think this thread could be informative for all. I am seriously contemplating setting up a hedge fund. The problem is that I don't know where to start at all. I am most likely going to thestreet.com hedge fund seminar in las vegas in a few months. I was wondering if anyone has any first hand knowlege on how to set up a fund. Any responses would be greatly appreciated.
Bank of America (Prime Brokerage division) puts on short but very comprehensive seminars on how to start a hedge funds. Watch for their ads in Barron's. Or contact them at: info@primebrokerevent.com
I am very interested in this subject as well, praetorian2 (not that I'd be even coming close to starting a fund of my own any time soon, mind you). Am I right in assuming that a hedge fund would allow other people to invest in and thereby finance the trader's account? One of the reasons I'm interested is that I'm continually amazed at the number of people who are open to the idea of investing in traders with a proven track record. Rushman
Yes, the best thing about it is the fact that you can keep about 10-20%+ of the gains. If you are a hedgie who pulls just 100% annually, you could easilly charge 30%+ of gains. That's some serious money on a 50 mil account (and many funds are in the hundreds of millions range), and much more than I can run my account to in the next decade. Surprisingly, I have mentioned this before to people who have either traded with me or talked stocks with me, and I've had some SERIOUS money offered in my direction to trade with should I decide to go hedge. I have seen those bank of america adds in barrons, but never went to a conference, has anyone here been to one? Is it worth flying to nyc for a 3 hour thing?
Another option is to get registered as CTA (commodities trading advisor) and just trade other people's accounts (commodities, currencies) withouth setting up a fund. Not sure if this would work for equities though. The big hedge money is in futures and currencies anyway. Btw, I have some decent currency systems available, the performance is like $200-300k profit per unit (margin requirement $5k, no compounding), on back testing data from 1987-2001. If anybody is interested in collaborating with me to persue this, sent me an email.
Praetorian, No, I haven't read it. Out of curiousity, I simply did a quick amazon search, and it was the only appropriate title that came up.
Pretorian2 Hedge Funds are easier for off shore investors than here in the US. THe US requires that a hedge fund have no more than 100 US investors and all of them must have a minimum net worth of 1 million which than then can be classified as an accredited investor. Yep There is 1000 fold more money in managing others when you can do well. Paul Tudor Jones hasn't made less than 100 million (from his winnings and fee's) every year for the last 10 years. rtharp
Check out... http://www.hedgefund.org/ Look for the "Order Your Hedge Fund Reference Guide" link on the left side under "Investors/Intermediaries:" MGB