I don't want to run something by myself. I have no idea about those legal, accouting, admin issues. I like to be focused at what I am best at. It will be the best if I can manage $5M as a part of a larger hedge fund. Anyone hearded of those positions, funds hiring managers with good track records? Anyone knows where to find partners willing to set up a hedge fund together? P.S I turned 100K to 266K in 2006, and 518K by the end of Jun/2007, then I added another 350K of my own money. I can manage another 2 to 4 millions without liquidity issues.
Once you have the registration process done, the administrative tasks are pretty easy. You don't need a full time lawyer or accountant. They just need an accountant to show up once a week to give him the paperwork to process. Many small hedge funds only have a small office with a secretary to manage appointments, and some salesman. The manager closes deals with people refered by the salesman. The manager usually enters the trading orders, altough you can hire a computer geek to enter the orders (without explaining him why you are buying/selling this shares and why to trade now), risking costly mistakes, and having your strategy exposed. What is tough in the beginning is finding customers.
I am currently running foreign accounts. I am not currently in the states. It is really tough for me to run it. I really need a partner in the states. Still i think running a standalone fund is more expensive than running as a part of a large fund.