Starting hedge fund

Discussion in 'Professional Trading' started by serg007, Jun 24, 2005.

  1. serg007

    serg007

    Hello colleagues !
    It is highly probable that I'll have to start and manage an offshore hedge fund in a couple of months. But the problem is I am portfolio manager, not administrator and I am far from all this "paper work". It becomes even more serious taking into account I am working in Russia. Although there are some hedge funds with Moscow offices, this business in general is rather exotic here and for this reason, I've not heard about fund startup service providers in Moscow.
    So, I am in situation that could be described as follows: If you want something to be done well, do it yourself :)
    So, I need your advice. Just where to start ? :( Do I have to talk first to the lawers (Akin Gump has Moscow office) ? Or, my first call should be to auditors/consultants (all of big-4 are here, too)? Or maybe to prime brokers (UBS,Citi, CSFB are here, among others) ?
    I know that the best idea would be to hire an experienced operation officer but that could take a lot of valuable time to find him/her in Russia. So, I'll have to start the whole process myself and then delegate operational stuff to somebody else in the future.
    Any hints would be greatly appreciated !
     
  2. slacker

    slacker

  3. serg007

    serg007

    Thanks for the starting point. Now I have something to read on the weekend :)
     
  4. Prevail

    Prevail Guest

  5. if you can provide the prime brokers with enough business, they'll take care of everything for you.
     
  6. what is the AUM threshhold to make it worthwhile ? is 2~3 million good enough ?



     
  7. serg007

    serg007

    Prevail- thanks for the link, I'll check it

    Copernicus- maybe you're right and the good idea would be to contact one of the prime brokers' offices. I say one because I'll probably have not more than $10mio as seed capital and that wouldn't make sense to share it among different brokers. Correct me please if I am wrong ?

    polee2000- sorry what does AUM mean ? :( If you're asking about the relationship between trading capital and costs associated with starting a fund, I can't answer this question now. That's why I'm looking for info before taking action. Hopefully, these costs will not exceed 0,5% of the capital to start and administer the fund during the first year, i.e. $50K. But today it is just my assumption, maybe I'll be dissapointed soon :)
     
  8. jerryz

    jerryz

    AUM means assets under management
     
  9. There are 8,000 hedge funds which can't efficiently invest all their funds already. Why exactly do we need another fund run by a Russian dude who accepts money through a PO Box in Malta?
     
  10. csfb and db have pretty large presence in moscow, i'm sure they would be interested in your business, calling them wont hurt you
     
    #10     Jun 25, 2005