I was looking to form a CPO/CTA and was wondering the process. How much investment was needed to form one. I was just wondering if anyone had formed one....how much they had to put up.
1) Find out as much as you can from your clearing firm before spending any money on lawyers, accountants and/or consultants. 2) I haven't used their stuff but look at miramarresearch.com. They may have set-up documents that you can use.
you don't form a CTA. It is a person - advisor. You do form a CPO. Unless you somehow mean a combo of this... Anyway, there are some threads on becoming CTA here, FWIW...
cpo is much more expensive and has much more difficult regulations due to your ability to pool money and write checks from that money. ssb
I'm in the process now. I am paying ~$15-$20k to a one-man legal firm, who works exclusively with this process. I know others do it themselves regularly... but I see it as a worthwhile investment to get it right. Be sure to ask lots of questions. Each of your service providers should be able to refer you to a number of other providers you'll typically need: - attorney, - fund admin, - auditor.
I should also add I got a quote from a top tier law firm which specializes in hedge fund / alternative investments. I was quoted around $40-50k for fund creation.
I was told a CPO should be a lot cheaper than a hedge fund....that's kind of why I want to go the CPO route first