advice on raising capital for hedge fund
I am beginning to start my own hedge fund and looking for outside capital/advice on how to get outside capital. I began investing three separate portfolios for my back in 2018 when I was in grad school school and in that time period I have achieved a return of 335% vs the sp's 154% return in that same time period - my average annual return from 2018-2025 is 26.25% vs the sp 500's 15.43% (this is fully auditable and I have every monthly statement for all 3 portfolios). quick background about myself - I did my undergraduate degree in economics, MBA with a concentration in investment management, and master's in finance with a concentration in financial markets. since finishing grad school 12/2020 I have been working at a trading firm downtown chicago. in the 6.5 years that ive been there I spent the first 2.5 trading and the last 4 years writing code because I wanted to pursue this and knew I needed to get better and mass data aggregation, automation, and analysis. I have spent the last 2.5 years building an app for equity analysis, market analysis, and portfolio management that is now fully ready to scale and can take on unlimited capital. I have a website and prospectus - now I just need outside capital. any suggestions would be greatly appreciated
sorry i’ve never made a post in a forum before but genuinely looking for advice. by the reaction emojis it seems like I did something wrong
Why don't you ask your current or old boss for money and introductions...
he does not know im looking to leave
If you want to raise capital and don't have strong connections to rich people or institutions then you need to let as many people know as possible you are looking for capital. Its tough to do this secretly unless you have strong connections already. I guess you could go anon on Twitter and try to get traction there to find people willing to speak with you in person.
A bit crude but how much do you have saved up/looking to put in yourself? Tough raising capital. Infra costs are a killer. Potential LPs are going to need a business plan. Your returns in your PA mean nothing with all due respect.
This topic has been covered to death on this forum, and the consensus is clear.
It doesnt sound like youve managed youre own book before, a lot goes into being a PM (espc at a startup fund) other than stock picking.
Advice if youre serious, move downstream to a wealth manger that runs their own advisory fund solutions (offering your own capital and any money from friends and family as pre existing capital). Leverage their infrastructure, build an institutional AND professionally audited track record and then we’ll see from there
at the beginning, it's friends and family
bump interested
If you don't come from wealth, your best bet would be to marry into it. Find an eligible bachelorette whose father is a billionaire. Do whatever it takes to make her your wife. After you are married, persuade your father in-law to take a flier on you and provide the initial seed capital for your fund.
I don’t come from a lot of money - my father was a high school drop out who drove trucks then started a small logistics company and my mom was a flight attendant.
I am married but my wife’s family are immigrants from sri lanka so they’re not swimming in cash. thank you though
How much money do you have right now? If you're serious, I can point you in the right direction but it's a long and arduous path.
thank you for the sincere reply.
it doesn’t need to necessarily be a hedge fund, it can start as wealth management - as of now it’s only friends and family with a local charity (run by a family friend).
and in terms of the long and arduous path - prior to working in trading I was a division one big10 athlete. I enjoy the challenge and being challenged.
again - it does not need to be a hedge fund, it can’t start significantly smaller. any help would be appreciated
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