Is it a HF?
My friend landed a position as an intern in a HF. There is an available position in his firm and he is trying to help me get in. I would love the opportunity but from the description he gives me about this place sounds iffy.
To start the head honcho is his mid 20s who has done it all, from being two yrs in the military, college, worked as a broker, previous ceo of two money laundering companies and has some other titles.
Then, the fund is kept under a minimum amount so it wont report to the SEC. Series 7 sponsorship is offer for the new interns, since they will be selling investment instruments.
I am not to familiar with the HF world but just hearing the honcho's description threw me off. I spent four yrs in the military myself and for the type of work he claims he did in the military is VERY questionable. I believe interns are not supposed to sell but is plausible. Series 7 for HF??
Let me know what you guys think. I don't want to end up working at a chop shop. Thanks
Throw the name of the firm here. If it's legit, someone on WSO might have heard about it.
Selling securities to the public? That doesn't sound right to me, unless there's an investor relations spin to it. Even then, you're not selling stock picks, you're selling the fund. And a kid right out of college talking to HF investors (institutions and FoFs mostly)? Doesn't track for me.
As someone at a fund, we're encouraged to interact as little as possible to the outside world, not sell them fucking stocks. My fund has it's "dodgier" aspects as well, but nothing like trying to stay under a maximum AUM. That's almost antithetical to the entire business of running a fund, unless you're up to something else.
Litmus test, will they want to know if Blue Horseshoe likes Anacott Steel?
That sounds like a bucket shop brokerage at best.
Yeah there are lots of funds that are under SEC reporting requirements from a AUM standpoint, but you shouldn't be "selling" anything. HF's have very strict marketing limitations which is why their websites tend to be sparse or non-existent.
You can always do a brokercheck.
Check out boiler room, just sounds way too much like it
Michael Brantley ain't got nothing on this guy! You'll make your first million in 3 years dude!
boiler room... classic. what is meant by investor spin off. and what is the max a hf could have under investment before it has to report it to the sec?
i forgot, my told me this firm contact investor they pull from a website. i dont know much about the HF world but do investors have to meet a certain criteria??
I guess i have to stick to my real estate analyst intern position, which by the way It sucks big rhinoceros balls.
The one nice thing about Real Estate is it's always in demand and they aren't making any more of it. So it's certainly not the worst industry :).
I'll give you a quick primer on hedge funds and investors.
A hedge fund is basically an investment vehicle. That's it, we invest in...something for a living. Usually publicly traded instruments. The reason we do it instead of everyone doing it for themselves are the standard 2 reasons anyone else does something: there are economies of scale, and the time cost becomes too high. So they pay us management fees and performance fees to run their money for them and preferably to make them lots of money. Occasionally, they call us and beat us into submission just for fun.
Only certain kinds of people can invest in such a platform. Accredited investors are individuals or institutions with a great deal of capital at their disposal relative to most people. Arguably, this is for two reasons. Firstly, the hedge fund industry is seedy and generally more risk-prone in investment style. You could lose all your money through a variety of causes. Secondly, the Mutual Fund lobby is strong.
So there are really only three kinds of investors: very rich people, institutions of large size, and other funds called "funds of funds." In theory you could make a HF a publicly traded company and raise capital that way too. Some of these names are relatively secretive and obscure. In some cases, a high net worth individual might just not be well known. In others, certain FoFs are more secretive and selective so as to command a premium from their investors. So basically HF IR involves a lot of client management and approaching. Every fund does it a bit differently. Mine is hilariously secretive, but I happen to be the Chinese wall, so I pretty much have everything.
That's why this sounds fishy. Just randomly calling people up isn't a generally great strategy. Hell, an email with an attached pitch book is better. This just makes me think its a bucket shop brokerage or a chop shop or a pump and dump scheme or something.
And just to clarify, of course many funds are under the required AUM, but generally don't WANT to be there.
That place sounds sketchy as hell man, I'd stick to RE if I were you.
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