I asked this in another forum, but didn't receive many responses. Does anyone out there know of where I can get templates of the legal documents necessary to send out to perspective partners in my hedge fund that I'm starting. I want something where I can change a few details, but essentially have the body of the information that I will need. Any thoughts are appreciated.
prae- I am a "reformed" lawyer and I know lawyers charge a pretty good sum to set up hedge funds. However, one of my friends from law school just set up one himself and his buddy who was a rocket scientist before he started trading. Perhaps my friend will answer some of your questions. I figure I might learn something too. Send me one of those pms when you have some questions and I will pass them on to my friend assuming my friend is willing to help you out.
sunfair- that link is just to a personal injury lawyer. Anyone have any other good avenues? Who else has set up a fund himself?
are you talking about an actual hedge fund? or for example, just set up an LLC, sell shares to the investors at $100/share. then deposit money in a trading acct, adjust the share price according to gains/losses, or pay a dividend. perhaps pay yourself a salary, pay for expenses from the business acct, etc. when someone wants to get out, you buy the shares from them at the current price. there would probably be a spread on your share price because you have to liquidate positions to cash someone out.
That's basically what I want, not a very sophisticated thing, but I want to have it be very structured so that I can insulate myself from possible losses. The term "hedge fund" is very all encompasing. I just want a structure where I can sell interests and collect a management and performance fee.
at ... www.planethedgeund.com or look in Barrons weekend edition there are sometimes ads for seminars on how to start up a hedge fund good luck
You may also want to contact Prime Brokers (assuming that you will be using one) such as Bear Stearns or Bank of America Securities. They may be able to help you set one up if you decide to do your business with them. Good luck.