Hedge Fund Entrepreneurship
I am a high school student and along with my friends hold interest in starting a hedge fund. We aren't looking for monetary gains as much as we are looking for experience. How would we go about starting a venture such as this?
instead of "starting a hedge fund," ask your parents to put $10k into a brokerage account and see if you can avoid turning it into $0
I already have one. Started with $500 and now it's just past $800. I'd say I was successful in not turning it into $0
If you want any chance at being successful you have to read this
http://www.wallstreetoasis.com/files/BDC%20Presentation_0.pdf
Wow. It all makes sense now. I found a penny on the ground immediately after reading that. It works
Would SB if I had it.... laughed way harder than I should have.
+$23 Arby’s gift cards is what got me
That's the hardest I laughed in a while.
I wouldn't advise you to "start a hedge fund" in high school, as this would require large amounts of capital to pay startup costs, which I'm assuming you don't have and its not like you are going to have outside investors anyway. However, you could definitely unofficially run a HF by pooling together some cash with a few buddies you trust and investing it together to learn more about the markets, discuss ideas, trade, etc.
Tip: Don't take your $500 into $800 experience as you being a master investor. The markets can humble you very quickly and you likely have a lot to learn. That being said, keep at it and it will be a valuable learning experience for sure
Oh by no means was I saying my portfolio gains was a symbol of some supposed massive investment knowledge, just responding to the one person who challenged me to not lose it all. Also I am considering doing that. The loopholes to get through seems too tedious at this point.
If anything, just pool your money with your buddies to pay less commission on each trade. As for raising outside $ to start a hedge fund... not gonna happen hah. Apply for an "margin" account with your broker so you can short stocks and if you want to get in leveraged bets, apply for an "options" account with your broker. However, I can't recommend in good conscience for a high school kid to mess with options. Good luck to you.
Start by going to a great school, which means putting all of your energy into your GPA. Getting into a school like the University of Chicago, getting internships at investment banks, working for one and then moving into an HF role to learn how to source and pitch ideas. Basically, figure out what ladder you want to climb and figure out what you need to do to get there. Look at the job applications/postings for the jobs you want and work backwards. Also keep in mind that "target schools" are where you want to be. Anything is possible provided you break it down into manageable pieces.
Right now, putting energy into your HF or personal investments is screwing yourself over (unless you have a 4.0...). All it is going to do is take time away from your studies which are what you need to get into a school like that, which is what you need to land a job like that...
I'm going to have to disagree.. Your post mentions the importance of GPA twice, but the college admissions is way more holistic than that. Once ivies see that you have about a 3.85 or 3.9+ GPA, and you can, thus, likely succeed at their campus, they move on to other factors like SAT/ACT scores, teacher recommendations, essays, extra-curriculars, recognition (local vs. state. vs. national), etc. Ivies routinely reject 2400 SAT, 4.0 GPA students in lieu of a student who has stellar academics but has also done extraordinary things outside of the classroom.
Putting energy into personal investments as high schooler = shows passion for a certain theme, which is what you need to get into a school like that, which is what you need to land a job like that.
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