Asking for a friend.
What steps do you need to take to start a hedge fund?
obv. the first step is to ask on an hungarian rc airplane hobbyist forum
I admire Jim Rogers because of his wealth and want to know how to do what he did
Yaay, for the first time Veeky Forums feels like home!
2.a lotta money
1. make money from kneepads
2. Invest in Hedge fund
3. scratch your head because you only make 5-15% ROI while kneepads brings 100,000% ROI
the social proof of operating a hedge fund has a value greater than most ROI
kek long time i haven't encountered a PUA
social proof doesnt just apply to girls though.
all the doors itll open for you if you carry a card saying you are a director of a hedge fund compared to one saying youre a lawyer or a doctor...
The best way to start a hedge fund is to start investing like one. Build a track record and start to attract friends and family to invest with you.
You normally need financial qualifications to run a true hedge fund but there are ways around this. One way is to invest under an umbrella company (such as an insurance company). An alternative is to get independent investors to invest in a partnership or limited liability company.
Are you the fag who was asking for a prospectus while being a dick to everyone?
I run my own fund, and if you follow those simple steps, maybe someday you will, too:
You will need some experience as trader in a bank, a prop shop or a commodity house.
Work for some years (min 5, better 10, otherwise you won't be taken serious)
quit your job, build up your own fund;
there are providers for turnkey solutions where you pay more but have less hassle, or you can build it from scratch (but will still need some advice, e.g. lawyer, audit, regulators)
use your network from the trading community to attract your first investors, grow slowly but surely
after 3 yrs of consistent exceptional profits go for institutionals, pension funds and endowments, hit the 1bln mark and get filthy rich
however admiring someone for his wealth and try to follow his path is kinda foolish. What makes you think "your friend" will succeed? Why not admire Tiger Woods and become a golf pro? The odds are better than making it in the HF circus.
protip, the first and the last step above are the hardest.
webm somewhat related. Like an amateur in the capital market; thought he made it but...
If you're so smart why do you need to ask us?
Well, basically this. But it doesn't have to be in an actual trading position - you could something regarding risk management, treasury, etc.
What size is your fund bro?
Sorry /biz/nessbro, but I will not share any information that could potentially reveal my identity or jeopardise my business on a slovakian drawing site.
again, webm related. This time, OP's the girl, weird dude impersonates capital market...
I really don't think that giving your fund size would lead to an identity leak... Small/mid, if you're comfortable with saying at least that much? >50MM?
Small. I'm trading a niche product. Also my strategy (think of statiscal arbitrage, relative value) does not require me to hold large gross positions at a given time. Either I unwind a trade for a profit immediately or hedge it, hence the net exposure is relatively moderate. Why are you obsessed with the size of the fund? A real pro would have asked for the current performance...
Also I'm on my own. I did not hire a team, I went for a turnkey solution and have everything that's not IR or trading related outsourced. It comes at a price, but if one does the math, it's still way cheaper than hire actual employees, even part-timers. If there are busy seasons/backlogs, I have some students on a temp basis helping me out with admin matters. I pay them a ridicoulously tiny salary only because I feel bad letting them work for free. But they would... they would do literally everything (kneepads, anyone?) for a reference letter from a fund. Even a shitty sloppy shop like mine.
So yeah, life's good.
Why are you obsessed with the size of the fund? A real pro would have asked for the current performance...
Hahaha, I asked that because I was more interested in knowing whether or not Veeky Forums has a large fund manager or if everyone here are NEETs - not because I wanted to evaluate your worth as one.
Good to hear you've found your own success and are happy man. So how'd you raise the funds? Through a similar method to the one you explained to OP?
So how'd you raise the funds?
I have worked in banks 10yrs+ before. So I got to know lots of investment advisors, (bank) AM/PM's and Private Banking RM's. Even though I've never worked directly on their desks, they do know me, they trust me and I never fucked up in the past. So I basically threw up like 200 dinners out of my pocket and just told 'em about me starting up after going through the mandatory small talk. The actual setup of the fund was a piece of cake.
On an unrelated note: Some waiters in my hometown think I'm a big times homo/gigolo now but I could not care less. They're still "aspiring actors/models" serving food while I live OP's dream.
Anyway, that's why it's important having worked in a (semi-)financial institution before. Not only for the experience but also to build up a network and credibility. Starting a fund without professional experience is like waving demos or screenplays at artists. If you read about it happening, it's once in a million, but wrong and unprofessional in general.
was more interested in knowing whether or not Veeky Forums has a large fund manager or if everyone here are NEETs
I know of at least 2 "big" fund guys on here, but they're more like /k and/or /b. I do only come here for shit and giggles and rarely post. Also, the quality of this board has dramatically plunged within the last year - or 2.
I like my girls young (see my previous post) and they don't give a shit about my work. But I mainly go for them because they won't hassle me with family planning or being gold diggers. As long as one has a(ny) job and enough $ for a bottle of booze in the club and a ride home, one's got game. Even if they ask what I work, all they understand is "something with finance", so there is that. If a random chick actually cares about your job (and is not from the industry herself) she just sees you as the middleman between your own net worth and her, hence trying to cut you out. #socialskills
wtf did i just watch
I thought I made that clear. An amateur starting a HF. Well, it's 2016 so that's a video metaphor...
Krauser, is that you?
wtf did I just watch
I hope this is true.
You know you have life sorted for you when you have millions of dollars and still have time for Veeky Forums.
that chinese girl so peng so piff
get called out on being a bullshit artist
WOW FUCK YOU IM SO OFFENDED RIGHT NOW
lol nice roleplaying thread
claim to have worked in banking before and that you have lots of connections
asking retarded questions like "how do you start a hedge fund" on Veeky Forums
Actually in the process of forming a fund with my friend to manage family and friend money.
Super cheap, only like 30k. Just find a lawyer that specializes in it.