Hi PFT, Interesting thread. Amazing that you got your hedge fund off the ground using unaudited results. I didnt think that could be done. Can i ask you a few questions please coz Im curious: What were your returns like, what was your worst year, what was maximum drawdown (peak to valley percentage), and over how many years was your track record? Thanks. Nizar.
Hi PFT, I just had a question regarding your family members in the fund. Considering that they are your relatives, does that mean that they can invest in the fund without the normal financial rules for hedge funds? I mean like the 1 million net worth, 300,000 income a year for a household, or 250,000 a year income for individual (I believe these are the correct requirements). So, did everyone in your family meet these rules in order to invest in your fund? Otherwise, are there rules where family members can invest in a fund even though they don't meet these requirements? Looking foward to hearing from you... Thanks a bunch
In starting a hedge fund, one should take a look at the blue sky laws in your state and the states of your investors. You may or may not have to register as an investment advisor depending on the state and number of investors IF you collect a management fee. Most states have a De Minimis exclusion for investment advisors.
Thanks trackstar... Im going to try to google the regulations and stipulations for "accredited" or non accredited investors, regarding hedge funds. If anyone knows some great links, that would be greatly appreciated. The SEC provides this information, but the way they present some of their information it seems like you must be a lawyer to accurately understand it. Any straightfoward and simple site that provides an in-depth definition would be perfect. http://www.sec.gov/answers/accred.htm Is this sufficient? I also have a "Hedge Funds for Dummies" book, so I'll look into that too lol.
these hedge funds make their money by 'solicitiing' funds from wealthy market players. these hedge fund 'investors' or players the fund is just trading firms or funds....it's not investing if you are getting 50% returns per year. they make money or higher returns like 25% and above on 'trading' not by investing with buy and hold strategies.
to the first sentence-- yes, some hedgies are purely asset gatherers. not sure what you mean by the 2nd part of your question/statement. surf
IANAL, but take a look at Regulation D of the 1933 Securities act, mainly rule 501(a), 502 & 506. I am sure you can google a link somewhere.