Startup Hedge Fund in High School
In order to start a hedge fund, my dad gave me 1.3M, grandpa 2.2M, uncle 700K, family friend 200k, other grandpa 3M. So in total my starting AUM is 7.4M and the strategy I am going to be using is convertible arbitrage. The reason for starting this fund is because I think it will look great to get into my target schools which are Wharton, Harvard, and Cornell. What do you guys think about this idea?
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What are ur top 3 convertible arbitrage ideas
That's not enough. You are competing with someone with a bulge-bracket lemonade stand gig when they were a child.
Bro this isn't a shit post I actually have my own startup fund with 7.4M AUM for college
Just donate it to the schools and you’ll have a better chance
My dad is going to make a pretty large donation as well. He hasn't figured that out exactly since his budget for getting me into college was initially 4.4M and he has already used a good amount of it but he says the donation will be atleast in the 7 figures.
Delete
I feel so bad for the other kids who are applying nowadays.
Creating a legitimate hedge fund and registering it will cost you a couple million already.
I can sincerly help you get the complete fund for under 50k. Even I started as a teen in finance
And also best of luck. Hope we work together
From taxation, sec, regulation, cap intro and prime brokers to name a few. I offer a comprehensive solution along with handholding support and full time availablity for any questions and queries. Would be honored to have such a young client. Thanks
And this forum has a lot of negativity for anyone breaking the norms in any ways.
Kind of like a protection racket for target school grads and big bank guys.
They want bots who only follow the template.
They are afraid of independent thinkers like you.
Show them what's possible with sheer strength and mental prowess
Don't be discouraged by the naysayers
Agreed. Take me for example. I wasn’t like every other kid, you know, who dreams about being an astronaut, I was always more interested in what bark was made out of on a tree. Richard Gere’s a real hero of mine. Sting. Sting would be another person who’s a hero. The music he’s created over the years, I don’t really listen to it, but the fact that he’s making it, I respect that. I care desperately about what I do. Do I know what product I’m selling? No. Do I know what I’m doing today? No. But I’m here, and I’m gonna give it my best shot.
OP, I've PMd you.
Interested in HF setup?
No thanks, I appreciate the offer. Have a nice day!
Thanks for the offer but my dad has already set up my fund and it only took about 150k. I am charging a 15% performance fee so even in my first year I should be able to pocket 123k. My goal is to make consistent, absolute returns using arbitrage methods so that my fund keeps growing and my compensation keeps going up.
Could have done it for 50k.
And that includes on-going support without the hourly rates that firms usually charge.
Still ask any questions that you have Thanks.
Be conservative with risk.
You are still young.
Ok, I'll ask whenever any questions come up.
all this money and you're putting your hopes on semi state-school Cornell?
First of all, cornell is a top target as well as an ivy. Secondly, my top targets are still Wharton and Harvard
Prestige Worldwide?
What?
congrats on being born into money, really accentuates your intelligence and work ethic
Thanks!
Why even go to school? Grow your AUM 3x through your convertible arbitrage strategy and then use your returns to attract more capital from cousins, uncles, friends. Then do it again and then start raising capital from people outside your family.
Still gotta go to school cause this is just a high school thing and maybe I will keep it going in college too.
Or ... just Ponzi scheme it
Assuming for a minute this is real... no one really cares that your family gave you some money to play around with. An LLC and $7M of family money in an IB account doesn’t make you a hedge fund.
The kinds of businesses that speak to adcoms usually involve leadership (managing other people) or building relationships with external parties (building an app is ok, but building an app and doing a JV with a nonprofit is a great story). You’d probably get more benefit from being captain of a sports team and starting a BS nonprofit.
Not saying it’s a bad idea per se, but misguided. Odds are either you lose money or you make it by taking outsized risk and getting lucky and then you blow up later... but if you do discover you have a knack for this and can consistently outperform, you should focus on raising more capital rather than going to school
Nah bro I don't know what your talking about, I have a family friend whose son is now working at Millennium Management who did this exact same thing when he was my age and got into Wharton.
...then why’d you ask? Correlation != causation, which will be helpful to understand if you want to be successful in this field
Pretty great idea. Would look more impressive if you could raise more capital. Get more legitimacy by getting listed on databases. If you're not willing to get real with it its a waste of your time and Wharton's as well. There are new databases that you can get listed on for free as well.
This is why I think colleges should give advantages to students based on income level rather than ethnicity
Where did your parents go to school?
Kid you have some big dick energy. The last guy I knew who did that, Ken, literally became Barbies boyfriend and then did a successful startup called Citadel. This is great for you because you are starting even earlier than him. Don’t let the folks on this forum discourage you.
I recommend that you read some classics in investing. Fwiw convertible arbitrage is an old game, but it sounds smart so maybe it looks good on a college application.
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