Planning to launch a small scale HF. AUM about 1M. Looking for people who have launch such small scale funds. Want to learn more about their experience. Or if anybody know any hedge fund manager who started such a small scale fund.
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$1m AUM isn't a hedge fund, it's an Interactive Brokers trading account.
People always shit on these. I'll take the bait, as someone who has worked at an allocator and a fund, both institutional money. What does "starting a hedge fund" mean to you? What is the goal? If you just want to trade all day, live on your performance, and think you can generated 20%+ returns that will justify your time and energy on $1mm, you could potentially make this happen. At this level of AUM you will make less than a first year banking analyst even assuming very strong performance (think about the economics here...) You will also unlikely ever raise institutional money and will spend your entire life fighting for drips and drabs of "rich guy" money, $250k at a time. Just do a basic back of the envelope and ask yourself whether the realities of a $1mm AUM fund are appealing to you. If all you care about is trading and you don't care about getting rich, maybe this is worth it. If you have dreams of riches, fame, a prestigious lifestyle, or even just getting your foot in the door of the industry via proven success, there are better places to look.