Good point and I believe you're right. They will also not bother you must if you don't have access to the cash so if a broker opens the account for the client and you just trade that then it's hard for you to run off with client money.
Those figures are all lowball, bargain-basement levels. Multiply each by about 2x for name-brand service providers, such as Big Four auditors... And you're assuming you're spending $0 on an in-house employee to shuffle the paper and oversee / interact with the providers.
Congratulations Lazar, you've done quite well. Up about 167 %, while the S&P rose less, at about 155%. I had to guess, of course, because you did not give us the exact date of inception. I think I used S&P = 850 to start. In any case you've beat the S&P over the last two years and that's good. A lot of fund managers can't say that. Keep working on it, and I would say that if you can maintain a similar record average relative to the S&P for let's say the next ten years or so, you might well be in a position to start managing other peoples money. You'll certainly want to go through at least one bearish period to test your mettle in that kind of market environment. Good luck to you and keep up the good work, and stay a serious student of the market.
Lazar, I'm interested in this incubator concept for proving your performance. How do you go about it? Who audits your results and where are they published? I think its a great idea for successful traders that want to take the set to money management. Runningbear
Opps, not 155%, 55%. You won't have to maintain a "similar record" over time, but just consistently beat the S&P by a good bit. Let's see how you do in 2011.
Thanks for your encouraging words. Offcourse 2 years of a record is not enough, however 5 years might be a different story. As I said I hope to update my results monthly.
Truth be told. Performance is but a tiny factor in raising capital. If at all. I point you toward the multiple hedgees who blow up then raise twice the amount as they had prior to blow up. Seriously, talking about performance is for the naive wannabes. Everyone has great performance otherwise they wouldn't be contemplating starting an incubator (WTF?) fund. Sorry for the dose of reality. Now go back to play.
I am a big fan of diversification and I would agree that one should not hold all (or the majority) of his money in the market. I own 2 condos already. Also as explained on my original post, I am not interested in launching a hedge fund now, I am just launching an incubator hedge fund, so if in 3 years I decide to launch a fund I should have a track record.