From a MAM account to a Hedge Fund, possible ?

Hi everyone,

Hope you're all fine !

My associate and me are working to launch a kind of Hedge Fund In Luxembourg through a Management company (MANCO).
He's a trader for few years and is responsible for managing the capital of our investors. His results are good (between 3 to 7% per month for our investors). As I'm concerned I'll be in charge of bringing investors.

At the moment, we are managing less than 500KEUR and we work through a MAM account but one of our investor suggested us to create an Hedge in order to aim a different sort of investors and manage more money in an easier way.

Our activity is just about doing day trading Long/short on the forex market (mainly), commodities and stocks.

We can provide a trade record based on 2 years of back testing.

We already talked to some assets/wealth manager who were enthusiastic with our business model and also recommended for persons who work for big insurance company in order to be part of their portfolio.

A management company told us that usually we need 10M EUR but they could do an effort and accept 7M EUR. That means we have to pay around 10K in order to "pre-launch" the structure. Then we have to  find institutional/professional/qualify investors which confirm being interested to invest on our "hedge fund" and from the moment we have 7M EUR, we are able to create the company.

• As we are not from the financial sector, what do you think about this idea ?
• Does anyone already did that before ?

Thanks for your feedback