I am looking for a prop firm that allows you to trade their capital

Discussion in 'Professional Trading' started by bdraws, Nov 16, 2005.

  1. bdraws


    I have been a successful prop trader on a desk w/in a large house for 6+ years. Now my partner and I are looking to either start our own fund, or receive a capital allocation from a prop firm or existing hedge fund shop.

    Right now we could go the friends and family route to raise money, or approach the seeders/incubation people. I was wondering if anyone has any advice/experience with these issues, any help would be greatly appreciated.

    Also, if anyone has a list of prop shops that allocate capital to experienced traders, could you post it or shoot it to me, thanks.
  2. Frenchy


    you need a series 7...
  3. bdraws


    i am series 7 & 63 licensed
  4. I have an extensive list of seeders/incubators. One thing you should know about them though, is that most look for a part of the GP (i.e. they want to share in your fund's revenue) and will want to be involved in an advisory capacity.
  5. bdraws


    Thanks hedge fund, we realise we will give up some equity in return for the starting funds, we are open to this if the person will be a true partner. Also, we were hoping for some type of expiring arrangement where the person would be levered out over time.

    What kind of money do they start you with? how much ownership do they ask for?

    Thanks for the help
  6. NTB


    what is your strategy? long/short equity?
  7. bdraws


    We are a long short equity trading team, our strategy yields 10% alpha, with a beta of 0.