I’m an college student still, wanting to end up in the HF world. But for some reason I have some idealization of owning my own fund. Is it crazy to have that idea and if so why?
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Not crazy but it will likely take longer than you think. I used to be naive and think I could leave college and start a hedge fund.
Now my plan is to get experience, become great at capital allocation, build a network, and then maybe start one.
Disclaimer: I’m not in the HF industry so don’t know the ins and outs, but I do know that you generally need a decent amount of AUM to even breakeven due to all the expenses, legal fees, etc.
They’re not as easy to start as they once were.
It's not crazy. There are way, way crazier ideas out there - like doing hard drugs or changing your personal values for other people.
And the good news is, you can grow out of this crazy idea of yours. Once you start recruiting or start working and know how immensely difficult it is and how thousands of the top talent from the top target schools never start HFs or even continue working for hedge funds
Read 'So you want to start a hedge fund' by Ted Seides - famous capital allocator and seeder of investment managers which include plenty of hedge funds.
Hope she sees this bro
?
Hard to start a HF unless you are at least in your early 20s w/ 1-2 years of HF/IBD experience - maybe 2 years of GS or as an associate at a Big 4 platform is ideal?
Dafuq
What on earth are you talking about
This is the way.
How the fuck did this gibberish get “most helpful”
This guy posts gibberish every now and again so either a troll or he rips his weed pen and just lets the finance jargon flow through him
Well the question is a little precocious because whether you should own a hedge fund or not depends in large part on your track record as a manager, and the experiences you've had running money. The decision is for a capable manager to decide whether it makes sense to own their own fund, or work at fund, or a pod shop etc. If you want to start your own fund, the first thing you have to do is establish a track record of making money, and a strategy you can sell. And most people never make it this far. Then you need to have enough capital to launch the fund. That means paying various costs associated with operating the fund, but also the cost of you and your team and anything you might need such as software, offices, health insurance. And there's a decent amount of stuff. Even a one man show has expenses. And there will be startup costs out of pocket unless you manage to raise big money for a fund with no track record. In addition, as the owner of the hedge fund, you will need to good at management in general, including managing employees, monitoring expenses, and making various business decisions that will take time away from your portfolio management duties. So you're really trying to do two jobs, PM and CEO. And you can blow up either one. But that said if you're in a position to do it, and you want to try, go for it.
No. But like any business, you need: 1) product and 2) customers
In this case, product = alpha, customers = investors/LPs.
Best way to create a product, is to learn how to, at a top-tier shop. MMs, market makers, SMs, etc. depending on your strategy.
Best way to have customers, well, is to build your reputation at a top tier shop.
HF in general is still conservative and conventional in nature, you don't have the typical '20s entrepreneur and his startup' type of thing in this industry, doesn't mean it doesn't happen, it's simply much rarer than other industries.
It's just as sane as wanting to win the lottery.
Maybe as likely unless your parents friends are loaded.
If you need peers validation, then you are not starting an hedge fund.
Just create a defi one for like 7 dollars and then you can LARP as a real manager
Track record is all that matters. If you’ve got an insane sharpe ratio then it’s not too much of an ask to manage capital - although I’d recommend managed accounts, but if you have the skills of a college student then you’ll have a shit time.
All comes down to how much edge you’ve got
It's super easy to own a hedge fund. A good lawyer can set up the paperwork for you in a week.
Owning a *profitable* hedge fund, though, might be a bit harder...
It's extremely hard to start one nowadays because generating alpha is getting harder day by day. But if you really want to open a shop, start one like Hindenburg (extremely hard) or in the quant space. Hope you find some anomalies.
It isn't crazy for an idea but you probably don't know what it really means to own a HF. I interned at a $200m, 6 person HF in Chicago. 
My dad was also the management company and founder's accountant. You will be starting a small business. You will be having to do so much more administrative BS then whatever amount you think you will be dealing with. It won't be like Billions. It won’t be like Industry. It won’t be like the Wolf of Wall Street. At least not for years.
The odds are you won't be in a position where you even can start a HF but it isn’t really that crazy. It is no more crazy than people gunning to be the next Bruce Wasserstein or Felix Rohatyn or Ken Moelis
Same situation as you, 1st year college student aspiring to have my own hedge fund in the future. Nice to know I am not the only one :)
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