you decide yo would like to manage money

Discussion in 'Professional Trading' started by chipmunk, Oct 16, 2008.

  1. No what?

    Let's say you only have $150,000 and have a record of about 26% R.O.I. five years but not auditied.

    How would you proceed if you decdided to set up your own fund and invest O.P.M.?

    Can it be done on so little?

    Is it best to build own account upto $500,000+ and obviously you need that audited track record... That's gonig to take years but I guess you have to be realistic and make a start.

    Constructive advice welcome.

    Thank you
  2. JCVR


    You might want to reach out to family and friends and get your AUM up as high as possible, do that for a couple years and then get the audit and start looking for outside money with your track record and hopefully good references from the original investors. Word of mouth is probably the easiest way to raise funds.

    No offense but managing 150k doesn't mean much and probably wouldn't help you to attract outsiders even if you had audited results.
  3. Yes but I focus on money management,risk control over actual stock picking. The method isn't becasue I only trade with $150,000. I could trade exactly the same way with $15 million.

    I mean all money managers had to start somewhere. Didn't Soros start with his own $250,000? So whilst I appreciate $150,000 is tiny it's not a method that gets returns because it is small.

    Thank you anyway.
  4. JCVR


    Thats good then, sounds like your strategy is scalable. Still, go the friends/family route. If you do well they will tell friends, who will tell friends and before you know it you will be managing a nice amount. Then when you have an investor base and a good amount of capital you will be able to pick up more investors.
  5. I know what you mean but my friends and family do not have the funds to invest that I want to cater for. I am not chasing $25,000 acounts. It's not worth it.

    Thank you
  6. forget about it for now other than f&f. this market has spooked all investors. they will not be willing to risk money with you. sorry. thats just the way it is.
  7. It's not REQUIRED that you have an audited track record, but for whatever you claim it must be audit-able.

    Keep records. Keep trading. "Time" is a big factor in breaking through to OPM.

    vhehn is likely right.. little success in trying to raise money now.... but a few years from now, a good track record could come in handy.... especially if you made a little money (or lost relatively little) during "The Depression of 2008-2012".
  8. Yeah right I'll take your advice with a big pinch of salt. On second thoughts I'll forget it.

    Why do people act like they know how everyone in the world thinks?

    I suppsoe if Buffet,Soros,Jones,etc asked for advice on this forum they'd still be day trading $100,000 accounts?
  9. That's it exactly GNOME. I am not looking for a get rich quick schme here. If it takes 5 years to get up and running so be it. Thank you
  10. Check around.... Query some people with money and influence and see what they tell you. We could be wrong about this.

    I went through a similar thing about 20 years ago. Everybody, including some who'd known me for years, said, "you're nobody in the money management business".

    When I'd done well enough for long enough, those concerns disappeared.

    And this environment is especially good for track record building. So.... you trade less frequently and smaller.. maybe trade some bonds... reduce your leverage... etc.

    Because one thing FOR SURE... they're gonna ask you, "How'd you do in the Depression?"... that will carry a lot of weight.
    #10     Oct 16, 2008