Track record to start a small hedge fund?
I've been trading for the past 10 years, and recently started incubating a fund in hopes to raise from family and friends, and then some serious capital.
$200k AUM fund (personal funds) focused on ES, NQ, and RTY futures. Not deploying any quant strategies.
Time from inception: 11 months
Return: 34%
Max drawdown (peak to trough) 4.7%
What performance metrics should I be focused on if I'm planning on raising capital, and what track record length is preferred?
this makes no sense. go into IBD/ER first and then move to the buyside.
post is equivalent of starting as a neurosurgeon after passing 9th grade biology
I see your point, but I don't want to work for a firm. I have a successful exit and I'm not interested in working for someone else at this point in my life (except my investors of course). An ideal sized fund is somewhere between $20 - 30m after a few years of track record trading family and friends.
I'm curious for advice, and what performance metrics would make it a compelling raise.
If you have a successful exit why not incubate with $20m not $200k?
Why is this form becoming a place for amateurs to source investors 😭😭😭
You should invest in gambling. Put it all on red, you can 4x your returns in like no time at all.
Due to changes in regulations and the industry maturing a ton, it's very, very, very, very hard to go from low #s to a real fund.
You pretty much need ~$150m+ to start. The days of dudes going from a ~$2m fund to $2B in 10 years or w/e are done.
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