Is it possible to start a HF in College?
First, I want to acknowledge that as a 17-year-old old, I know nothing about finance other than the basics of Excel, statistics, and accounting. With this in mind, is it possible to start a hedge fund while in college? I am very passionate about investing and will likely be attending a semi-target. I think with the number of resources (Bloomberg terminals, profs, startup incubators, etc.) that are available, and the amount of time I will have this would be the best place to do this.
Am wondering if this is feasible, or a waste of time and money. I also have quite a bit of capital which I would be willing to apply if needed. Thanks!
Note this will not take away from the time I spend drinking and banging chicks
Based on the highest ranked content on WSO, starting a hedge fund in college is an ambitious goal, and while it's not impossible, it's extremely challenging. Here are some points to consider:
Capital and Investors: Most successful hedge fund managers who started funds in college had significant capital, often from family and connections. It's not just about having capital, but also about convincing others to trust you with their money.
Experience: Hedge funds are complex and require a deep understanding of financial markets, risk management, and investment strategies. Without experience, it's hard to gain the trust of potential investors.
Regulatory Hurdles: Starting a hedge fund involves navigating a complex regulatory environment. You'll need to understand the legal requirements and have the resources to comply with them.
Operational Infrastructure: Running a hedge fund isn't just about picking stocks. You need infrastructure for trade execution, compliance, risk management, and client reporting.
Education: While you're passionate about investing, there's a lot to learn. Use your time in college to gain knowledge and experience through internships, clubs, and courses.
Networking: Building relationships in the industry is crucial. Networking can lead to opportunities and partnerships that are essential for a successful hedge fund.
Time Commitment: Managing a fund is time-consuming and might conflict with your academic and social activities, despite your belief that it won't.
Given your age and stated experience, it might be more feasible to focus on learning and gaining experience in the industry first. Consider internships, joining investment clubs, and leveraging your school's resources to build a solid foundation before attempting to start a hedge fund.
And remember, while college is a time for learning and exploration, it's also important to maintain a balance and ensure that your academic and professional goals are not compromised by other activities.
Sources: Hedge Fund Careers: Getting a Hedge Fund Job Out of Undergrad and Beyond, Hedge Fund Careers: Getting a Hedge Fund Job Out of Undergrad and Beyond, How to Start Your Path to a Hedge Fund Job, How Difficult Would It Be to Start A Hedge Fund After Two Years As Analyst?, What should I know before starting a Hedge Fund?
1. You don't even know what a hedge fund is
2. You know nothing about finance
3. You will not be able to raise any outside capital
Good luck though man I'm sure you'll be able to run a hedge fund at 17!
Ok well I mean I kind of was trying to just not come off as cocky I am in Dual enrollment so I have been going to college for the last couple years. But that's besides the point. Maybe I won't try to start a HF, but would trying to find a way to generate alpha be a waste of time?
"but would trying to find a way to generate alpha be a waste of time?"
How much more cringe can you possibly become
And I have 200k so even if I don't get outside investors, it won't be a complete waste of time
Focus on your time at university and do your best to get a good offer. Then worry about starting your own fund.
You will never be a real hedge fund manager. You have no AUM, you have no LPs, you have no alpha. You are a teenage boy twisted by delusions of money and grandeur into a crude mockery of capitalism’s perfection.
Well, I have been working on getting capital and building a strategy, but I mean why not try? I don't get all ms, I mean obviously the odds of succeeding are low, but the amount of free time I have and the access to data analytics like there's really nothing better to do. The info I learn will be directly applicable to getting a FT offer, and the connections I make will also work for both. If nothing else it will make a good interview story.
tbh though that was some damn good writing
Okay boomer
It’s definitely not easy and you have a lot of work to do on your industry knowledge and trading knowledge from the sounds of your post. It is possible though, I started a hedge fund during university and it worked out really well for me.
I did and still do have a very differentiated and very robust edge though.
Now I run a multi manager fund.
Ken Griffin LARPer?
Just a hedge fund manager being myself. No interest in being anyone else.
Do you mind if I pm you
Sure. Happy to help out.
I don’t see why everyone is hating OP. Baby face bill ackman did with his daddy’s money. Why can’t OP? Lol
Ok well tbf my daddy doesn't have 3 mill lying around to give me lol
Snowball's chance in hell. Impossible in this day and age with how regulated and mature the industry has become, it's a completely different world than 30-40 years ago. You are wasting your time even contemplating such a thing. Focus on graduating college and learning useful skills because right now you have precisely 0 value or insight into the finance industry.
This line alone shows your immaturity and is evidence enough that you probably wouldn't have a chance even if the world were like it was back when Ken Griffin was starting a HF out of his dorm room.
When you talk about how mature the industry is do you mean it'll be hard to find a strategy that will generate consistent returns or hard to raise capital?
Not possible. VCs are happy to throw money at 20 year old startup founders but it is not the same with institutional money managers. You need to have ideally a multi-decade track record as an investor and a differentiated thesis, not just beating the S&P in your own $50k portfolios on a few strong beta years. Unless your family has a few hundred million of course.
Go work in IB and then get a HF job to learn the ropes
Thx for the input. Out of curiosity is it possible to go right into HF out of college with only internship experience? Or do most people just take the traditional IB to HF route.
A handful of the larger funds do recruit out of college but typically funds prefer some experience, training and investment acumen that candidates from IB/PE have acquired. It can be done out of school but there's very few seats at reputable funds
Would recommend against joining some tiny no name fund just to say you're at a HF, will be hard to move up from there and there is close to zero job stability in HF
Tried to edit this but can't. Since the consensus is this is not possible to do in college what are thoughts on starting a hedge fund/quant trading club at my college and getting some funding this way?
No one is going to give money to a college kid or group of college kids. At best maybe you'll get $50-100k if you can get some members with wealthy families, but that is still at the scale of investing one's personal portfolio
Lots of schools have student-run endowment funds where you can learn fundamental valuation and pitch stocks so I would look for this
OP, have you watched
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