article re setting up a hedge fund. a little legalistic, but no one said setting up a hedge fund is easy, or cheap, for that matter Varima-Garch
I'm in the process of doing this. The management company will be registered in BVI and the fund will be registered in Cayman. I'll let you know how it turns out.
I have set up the management company and I just got the bank account opened. I can't open the brokerage account until I get my first bank statement because they need it as proof of address for the company. So I'm waiting on that. Hopefully it will arrive by the end of the month. I used a company called Wwincorp to register the company and open the offshore account for me. I'll update the thread when I have more info.
The ONLY purpose of incubator hedge funds is to get a good "track record" no matter what. Institutions set a long incubator fund and a short incubator fund. One of them will get stellar returns, they boast about the returns of the winning fund and hide the losses of the losing fund. This is how it works.
We don't form incubators, our outside law firm Investment Law Group does. GreenTraderTax and GreenTraderFunds handles accounting, tax and now audit too, but not accounting and audit at the same time. Investment Law Group has a cheaper formation if its just your own funds, around 3k. But, for friends and family incubators, you need a full set of documents - they are huge - except for the compensation parts, since its an incubator and not a full hedge fund. You can't believe all the red tape and issues with states, SEC and or NFA. And, it's only going up. To cut corners is at your risk more than the investors. Do it wrong, and investors can seek rescission, which means all their money back with interest. Not speaking with an attorney who is an expert in this area is a big mistake! Separately-managed accounts and just trading your own simple retail trading entity is okay, too. You can show statements later on, bypassing lots of the expensive fund compliance and red tape.