Starting a quant hedge fund

Discussion in 'Professional Trading' started by chameleontrader, Feb 17, 2008.

  1. Hi all,

    I have one investor who is urging me to start a HF in the next 12-18 months or sooner (instead of waiting 2-3 years).

    I don't have the CV to start at another HF (especially now), but that doesn't bother me that much, because I am interested in starting my own business. We have some pretty good ideas and concepts, which have to do with AI, macro and behavioral finance. We have 2 or 3 strategies which are promising but need more work.

    The disadvantage of delaying would be that I might lose a few members of the team. I am pretty confident that we can build something really great over time.

    1. What is the minimum invest including living cost, rent for office, data stream, servers?

    2. What management fee/performance fee should we target? We might a minimum cap for management fees to support the business (250k$)

    3. We are free to locate anywhere worldwide. What is the best place to minimize cost? We don't need connections to the industry and might locate outside of the mainstream.

    4. How important is it to have the right investors, who understand the business etc.?