Incubator Hedge Fund

Discussion in 'Professional Trading' started by fhg386, Mar 15, 2012.

  1. fhg386


    Can anyone recommend someone to set one of these up? I asked for information from two law firms I found online but they haven't contacted me.

    Has anyone set one up and would like to share their thoughts?
  2. rmorse

    rmorse Sponsor

    Yes, I can help.

    Email me your contact information and a brief description of what your trying to do, and I'll send you the contact information of an administrator that provides services for start up hedge funds and RIAs. They are very knowledgeable and reasonable. We have a working relationship with them.

  3. Epic


    There is a really good chance that an "incubator fund" is a complete waste of your hard earned money. It is a really great way for lawyers/accountants to make a quick buck, but that is about the extent of it.

    Tell us what you hope to accomplish with this incubator fund and I'd be happy to explain whether you are one of the very few people who wouldn't just be wasting the money.
  4. We have had good luck with the incubator funds we have set up. They can be useful if you are serious about starting a hedge fund. It is one path though there are others.
  5. 1) Your clearing firm ought to be able to help somehow. If not, move your account(s). :eek:
    2) For curiousity sake, look at for potential ideas. :cool:
  6. fhg386


    Thanks for all the replies.

    I don't have enough money for a Primebroker so I don't have a clearing firm.

    My plan is to start an incubator fund and generate a 3 year track record. If my strategy works, then try to establish a real hedge fund.

    For the incubator phase, I just need audited results. This means I will run only my own money and will not be compensated.

    Needless to say, I will need to keep my day job and will try to keep my costs down.

    The incubator fund is basically a leap option or warrant. I'm going to be trading either way but if it works the way i'm hoping, then the results would be marketable and well worth the costs.
  7. rmorse

    rmorse Sponsor

    You don't need audited results right now, so there is no reason to pay $10K+ per year for an audit. Just keep all your statements and transactions. When you say you don't have enough money for a prime broker, I'm not sure how much you have. If you meet our minimums, we might be able to help you through the process.
  8. This is how I understand it too. Why create an incubator fund right now? Why not just trade on your own and if you are able to build the track record a few years down the line, get them audited and use that to raise money? What are the advantages of actually creating an incubator fund right now?
  9. rmorse

    rmorse Sponsor

    What I suggest to my clients that want to build a track record to attract investors down the line, is to open an account. Create sub accounts for different strategies. Trade and build a track record of at least one year. During that period of time we can help with offering platforms, relationships with prime brokers, routing, end of month customer reporting, etc.
    When your ready, third party administrators, SMA, accountants or any other support to help you grow your business including cap-intro when we can. This business advisory we offer helps our clents understand the hedge fund or SMA business.
    #10     Mar 17, 2012