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

you were lucky to start at the beginning of the greatest bull in history. the old saying is dont confuse brains for a bull market. just asking. dont know. do you think you have the skills to play anything but an up market?

 

Should be easy enough to notice correlation to the broader market. Anything higher than about 50% correlation and his performance is simply average. OTOH, 20% correlation and it is respectable, but still not abnormal.

 

Incubator fund will cost about $3,000 to setup and doesn't carry any of the maintenance costs.

Certainly, your $100K first year cost statement is a slight exaggeration though. More in the $50K range is realistic.

-$25K fund setup
-$10K audit
-$5K tax prep
-$10K administrative

But your point is well taken. With only 60% annual returns, he'll need 500K AUM just to break even after costs, running a one-man operation. A fair stress test would take market correlation into account and after that he might discover that he's really looking at $2MM minimum to launch the full blown fund.

 

I was using those figures as a situational example not as factual figures. Work on reading comprehension before trying to belittle others.

 

http://www.google.com/search?rlz=1C...urceid=chrome&ie=UTF-8&q=incubator+hedge+fund

 

Your syllogism is false. Not remotely referring to your numerical examples.

 

Uhh, those structures can't accept <i>clients</i>... there's no "fund" in an "incubator hedge fund."

 

Let me just clarify, the purpose of this thread is NOT about advertising or solicitation, in fact I have no interest now in managing money for people I don’t know. The purpose of this thread is to share performance and at times strategy, and get comments and insight from industry professionals.

Now regarding SEC Reg D, I have discussed it with my attorney last month, and he advised me that there is no problem in posting performances on a forum, “especially” if you are not publicizing the name of the fund and the name of the manager. If your interpretation of the law is different, let me know.

 

It was actually 170% in “2 years”. And I am not sure I could repeat it every 2 years…..

 

I think this is the purpose of this forum. I have a few questions:

- What was your Sharpe Ratio?

- Profit factor?

- Win rate?

- max DD?

If you are willing to do so, you can attach a list of your trade returns and I will run statistics that tell whether your returns were achieved by luck or skill. I can do that privately if you wish so. I do it out of curiocity and for fun.