I have to question how anyone can start a hedge fund without understanding this. If you start up a local pizza place and it makes good money for 5 years straight that doesn't mean that if your seeded 5 billion dollars you can take on Pizza Hut. At a certain level of size/capital there is alot more variables going on there than just selling pizza and getting good kids in highschool to work for you. I won't be ready to go this route for another 5-10 years but from what I've looked into I really don't get why anyone on here would even want a hedge fund instead of a CTA. Your ultimately going to be offering a product to increase the risk/reward of your clients money...Just like I wouldn't be interested in investing a dollar in a bum on the street so they can buy magic markers and have a proven track record of 100% a day on a dollar from pan handling. If I invested 10k in the bum's strategy I would obviously never see a dime of that back let alone 20k the next day. Goldman isn't going to be cutting you billion dollar checks no matter what and I'm not even sure you would like the results if they did. Just seems more logical that if you kick ass on Autumn Gold or the like for awhile that an accredited investor seeking diversity of strategy will kick you a 100k and you might actually both benefit. Trying to court big institutional money just seems like more of the overconfident idiocy that saturates this business.
I don't disagree with anything you write however it is always surprising how far "overconfident idiocy " has gotten people in life let alone capital raising. Want to raise institutional money? Be prepared, be professional, do your homework and go for it, worse they can do is say no.
according to Green, they will charge you around $4000 for the no frills incubator fund. they say that is sufficient to build a track record. if you want audits, tax returns, etc, it'll probably run you 15-30k to get started. What are the differences between such "incubator fund" 9set up by green) and you just simply set up a LLC or LP on your own as the "private fund" and just put some money into such "private fund" and trade it? Can any one share some of experience? Thanks.
Yep living in dream land their kid. The wealthy/big players aren't interested in newsletters....you are left with the get rich crowd. Who want to make 50% a month, no losses and for just $27.99 per month with bonuses. ---------------------------------------------------------------------------------------- 'Charge like 200 a month, get a 1000 investors and make 200k a month'
It looks very "catch 22" I don't think it's even worth managing anything less than $100M. but the "hoops you are going to have to jump through" to get there look astronomical.