What steps do you need to take to start a hedge fund?

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

that's simple.

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 Veeky Forumsnessbro, but I will not share any information that could potentially reveal my identity or jeopardise my business on a slovakian drawing site.

>#whoisthishackernamed4chan?

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...