Starting a Hedge Fund - choosing systems

Discussion in 'Professional Trading' started by scottmotte, Oct 10, 2006.

  1. Hi,

    I am hung up on the question of software with regards to a new hedge fund.

    I have been researching how to get a hedge fund off the ground over the last couple months, and just about ready to spend the cash to set up the necessary legal structures and implement the day to day operational systems.

    I have determined my dealer/broker as Scottrade Advisor, but find the choice of my porfolio accounting software a difficult one.

    Advent seems the most powerful. Advent Partner or Advent Office seem to be the two best choices. They offer good solutions for a small hedge fund. But my main concern is reporting. I want my hedge fund to have unlimited break periods so that my client's can pull out money and add whenever they choose. Along with that, I want on demand reporting, updated to the day. However, Advent cannot give me a clear answer on whether it does this or not. I am having difficulty getting through the fluff.

    Meanwhile, my other options are:
    FundCount - looks ok, but pc based
    Eagle PTPlus - looks like a very young company
    CAPTools - looks really old timerish
    Portfolio Director - looks to slim, and pc based

    Any thoughts on your guys experience with getting accounting systems set up for your hedge funds? I appreciate it.
  2. laputa


    Just go open an advisory account with IB
  3. elit


    Could a hedge fund use IB?
    Why would an advisory account be needed?
  4. laputa


    You should visit their website.
  5. I have asked this of dozens of potentially good traders. "Why give away 80% of your profits, when trading with us will give you $millions to trade with, and you keep 100% of your profits, and don't have a bunch of friends and relatives and other investors breathing down your neck?" That being said, if you've already raised over the $30Mil required to register (I think that's the amount, it may be more by now), then go for it, and I wish you all the best.

    Goldman Sachs has excelent online record keeping for all types of accounts.

  6. squeeze


    What strings are attached to the $millions?

    How would I connect?
    i.e FIX via leased line or something else?
  7. don's phrasing gives the impression that one needs over "30 million" in order to register to start a hedge fund. this is not accurate.

    however, he is correct, ,most are better served going the prop route if all you want to do is trade. running a fund requires skills far beyond being a good trader.

  8. spinoza


    Below is a link to a company which provides low-cost Hedge Fund start-up and Legal/Administrative services. They help correct many misconceptions which you may frequently see here at ET and elsewhere. (I have no association with them, but know several satisfied clients)
  9. Yeah, as I said, I'm not sure what level requires "registration" these days. I recall, in the past, the number of members was 35 "qualified" investors and $30 mil....?? A certain distinction came into play at certain dollar levels.

    Can you shed some light on the current facts, I would appreciate it.


    #10     Nov 2, 2006