My account value reaches $600,000 for the first time; launching incubator hedge fund

Discussion in 'Professional Trading' started by lazar206, Jan 31, 2011.

  1. lazar206

    lazar206

    My averege short price for VXX is 30.70, VXX closed Feb 28 at 20.18... besides that, VXX is only a small position in my portfolio.
     
    #101     Mar 2, 2011
  2. I may have missed this but what were the total setup costs for your fund? What about the projected annual costs?
     
    #102     Mar 2, 2011
  3. VXX closed Feb 28 at 30.18, and yesterday at 32.53.
     
    #103     Mar 3, 2011
  4. lazar206

    lazar206

    Off course it closed 30.18 not 20.18, was just a typing error.
     
    #104     Mar 3, 2011
  5. lazar206

    lazar206

    Until now the cost has been $1600 to establish the incubator fund and annual expenses should be minimal, as long it’s in the incubator stage. All of this is changing “drastically” when converting the incubator b into a full fledged hedge fund.
     
    #105     Mar 6, 2011
  6. Ok, but won't you need an audit each year for the track record to mean anything?
     
    #106     Mar 6, 2011
  7. With some structures, the partners (in this case, perhaps OP alone) can agree in writing to forgo an audit for a year or two.
     
    #107     Mar 7, 2011
  8. lazar206

    lazar206

    Exactly. When you are converting to a full fledged hedge fund, its at that point that you will have all the past years audited.
     
    #108     Mar 7, 2011
  9. heech

    heech

    I'm not sure where this information is coming from. I'm not saying its wrong, but just that it doesn't match what I've seen.

    From my limited experience so far, the only requirement for "audited" numbers is coming courtesy of the NFA. As a registered (non-exempt) commodity pool, I have an obligation to provide an annual report + audit for all of my investors.

    Other than that, when dealing with prospective investors (especially institutionals), I'm always asked for the date of most recent annual audit. (And, presumably, they will want to see sign-off from my auditors if due-dil proceeds further). No one has ever suggested they'd want to see audits from past years.

    No investors so far have challenged or queried me on my historical performance numbers. I could've put fantasy numbers on there if I so wanted, and no one would be the wiser. We're all more or less operating under the honor system.
     
    #109     Mar 7, 2011
  10. Wow, that's scary. I'm sure there are plenty of unscrupulous people that would use that to their advantage.
     
    #110     Mar 7, 2011